In Q2 2020, NVIDIA’s Data Center business managed to outmaneuver the company’s Gaming business, surpassing the latter by nearly $100 million and accounting for nearly half of the overall revenue. The primary driving factors behind this achievement was the Mellanox acquisition and the introduction of the new Ampere based A100 Tensor core accelerator.
Comparing the present scenario to five years ago, you can see that back then the Data Center business was rather paltry, accounting for just 7% of the overall revenue. In comparison, gaming was responsible for more than 50% of the 1H 2016 revenue. Fast forward to 2020, and you’ll see that the same Data Center business has grown six times, leveling with the Gaming segment at 42%.
On account of the mining boom, 2019 was NVIDIA’s best year in terms of revenue, bringing in nearly $12 billion for the entire year, with gaming forming the bulk of it, followed by the Data Center market. 2020 is expected to bring in slightly less money, with projected yearly earnings of $10.9 or nearly $11 billion, with gaming still being slightly more lucrative than Data Center, at least for the time being.
2021 is when the Data Center business will overtake gaming for good, becoming the central pillar of NVIDIA’s business. Consequently, the revenue for the first half of 2021 is slated to grow from $4.8 billion in 2020 to $6.9 billion in 1H 2021.