NVIDIA’s Data Center revenue surpassed gaming for the first time in the second quarter of 2020, bringing in nearly $2,000 million. At the recent BMO Summit, NVIDIA CFO Colette Kress was able to give us some hard figures on the market cap and TAM (Total Addressable Market) in the Data Center space for the company.
Turns out that NVIDIA has a total TAM of $50 million, and that is without the value added by the Mellanox acquisition. Adding the Mellanox market, it easily hits the $70 billion TAM mark. This is twice as much as AMD’s $35 billion TAM as shown in the last investor presentation.
NVIDIA expects a revenue of up to $7 billion from the Data Center market for the financial year 2020. In comparison, the company’s total revenue for 2019 was around $11 billion. Going by those figures, if the gaming revenue doesn’t change much, the server segment will account for more than 60% of the overall revenue.
