NVIDIA Corporation (NVDA) Is Not Resting On Its Laurels

Foolish bottom line
According to IDC, the PC market declined 14% year-over-year last quarter; Gartner pegged the drop at 11%. Nevertheless, NVIDIA was able to grow its GPU revenue and profitability due to its strength in the high end of the market. Hardcore gamers cannot just switch to tablets, and rapid improvements in screen resolution and game complexity create a constant demand for more graphics processing power. Similarly, enterprises using Quadro-equipped workstations need state-of-the-art graphics capabilities to excel in their fields, while supercomputers can always benefit from more efficient and more powerful processors.

If NVIDIA Corporation (NASDAQ:NVDA) can continue to produce high quality GPUs for these markets while attacking new growth segments like mobile, auto, and cloud, it should continue to thrive in spite of the PC’s decline.

The article Why NVIDIA Doesn’t Care if PC Sales Are Down originally appeared on Fool.com.

Fool contributor Adam Levine-Weinberg owns shares of NVIDIA. The Motley Fool recommends Intel, NVIDIA, and Tesla Motors. The Motley Fool owns shares of Intel and Tesla Motors.

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