Nvidia Corp is estimated to earn a whopping $1 billion from its cloud computing business alone in the next couple of years.
The word comes straight from the chipmaker's mouth which revealed its expectations to Reuters. With the increase in demand for data collection and analysis, Nvidia expects it to fuel the increase in demand for graphics chips.
"Chipmaker Nvidia Corp said it expects cloud computing revenue to hit $1 billion in the next two to three years, as demand for big data analysis drives growth in graphics chips," reports Reuters.
The company's earnings forecast in the impending few years was revealed by Jen-Hsun Huang, Nvidia's CEO, at the Computex 2015 in Taiwan, who also revealed that the company estimated a growth of 60 percent to 70 percent in cloud revenue every year.
Nvidia manufactures graphical processing unit (GPU) chips for computing and gaming purposes. Moreover, the company has also been exploring the auto sector in tandem with Tesla Motors Inc. with its automotive graphics.
A number of cloud service providers have borrowed from the high performance computing world to add GPU acceleration to their services in a bid to cope with diminishing returns on CPU performance
Cloud computing is Nvidia's fastest growing offshoot and the company is optimistic that high demand for data analysis and collection will propel the growth in this sector further. Thanks to cloud computing, people are able to indulge in games that are graphic heavy even when on the Internet. Moreover, GPUs from Nvidia can be deployed in a plethora of applications like voice commands - a la Siri from Apple.
More and more enterprises are utilizing Big Data, which are resulting in the creation of chips that are compatible with high-end computing and heavy duty apps.
With chips and processors being inimical to Big Data and the demand for chips that are able to run apps that are data heavy, Nvidia has a conducive environment it can take advantage of.
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