The pandemic brought with it different changes. Teleworking and improvement of domestic infrastructure to carry it out, investment by companies in computer equipment, among others. Nevertheless, spending on computers has plummeted with the return to normality but it seems that data centers, such as AMD and Nvidia, are getting around all this very effectively. How do they do that?
While you can talk about a PC crash, AMD has been able to get around the problems that Nvidia is having, for instance. In August of this year, Nvidia received some encouraging news, and that is that sales of GPUs for games plummeted. Its luck has been that it does not sell CPUs for computers, since otherwise it seems that its situation would be worse. But what about AMD? Are you also in crisis?
AMD overcomes the PC crisis successfully
AMD sells CPUs and GPUs for devices like desktops and laptops. But, in addition to this, it has a data center business that has not stopped growing in recent times. In fact, despite the crisis that the PC is experiencing, this has served AMD to counteract it. Therefore, more notable growth is expected for which you will have to be prepared. Well, the demand will be very high.
But, that AMD overcomes the crisis thanks to its data center business does not mean that it will not affect it. The current inflation is affecting all types of businesses. Trying to stop it is not easy and expenses are decreasing. That is why the growth that AMD had estimated may be a little lower. However, they think that their CPUs and GPUs will continue to sell quite well.
Nvidia also has certain advantages
Despite the problems that Nvidia is having, and that we mentioned before, it also has a data center. This has allowed him to better cope with such devastating news about his drop in sales. That’s why, like AMD, is focusing on data centers so that your business profitability can be maintained within acceptable and relatively stable margins.
We cannot forget to mention the investment in cryptocurrencies that he has made. Despite all the skepticism that still surrounds this type of currency, however, the truth is that it seems, every time closer, that it will be the currency of the future. For now, Nvidia hopes gaming GPU sales won’t plummet again and that they manage to maintain themselves, with a view to growing, again, in the future.
AMD and Nvidia have not only revealed that the data center business reveals a promising future. Although this has been the one that has allowed them to have a plan B in the situation in which they currently find themselves, the truth is that the estimate of the profits that they will receive for covering more than one market is encouraging. Approximately one billion are expected to be achieved.
The truth is that data centers have had a special interest in recent years. In fact, some call them a profitable investment. Perhaps, this is what AMD and Nvidia thought when betting on data centers. In the end, right now, it is what is saving them a bit from the existing crisis. We will wait to have more information about it to see how everything evolves.
