So the majority of Nvidia customers are still using cards running on older architectures such as Pascal, which was introduced over five years ago.
More importantly, Nvidia noted that only 20% of its installed base has upgraded to an RTX series card. This is impressive considering that graphics cards based on the Ampere GPUs have been on sale for over a year now.
Nvidia CFO Colette Kress pointed out on the earnings conference call that GPU demand continues to outpace supply. The segment produced 47% of Nvidia's total revenue in part because of the "exceptionally strong" demand for its Ampere graphics processing units (GPUs). Nvidia's outstanding performance last quarter was driven by an 85% year-over-year increase in the company's gaming revenue, which came in at a record $3.06 billion. Image source: Getty Images Nvidia's two biggest businesses are built for long-term growth Let's look at the reasons why Nvidia can sustain its high pace of growth in the long run, and why it remains a solid bet for anyone looking to add a top growth stock to their portfolio.
However, don't be surprised to see Nvidia exceed expectations once again thanks to favorable business conditions and the company's dominant position in the video gaming and data center markets, which could help the stock deliver more upside over the long run. Nvidia expects $6.8 billion in revenue this quarter, which would translate into a 44% year-over-year increase. The company's Q2 revenue shot up 68% year over year to a record $6.51 billion, while adjusted earnings surged 89% to $1.04 per share. It reported robust growth in revenue and earnings and set forth solid guidance that exceeded analysts' estimates. Nvidia crushed Wall Street's expectations. The good part is that the company didn't disappoint when it released its fiscal 2022 second-quarter results recently. Investors have come to expect outstanding growth from the chipmaker quarter after quarter due to the tailwinds in the video gaming and data center markets, its two largest segments. Nvidia ( NVDA -6.13%) stock has delivered impressive returns to investors so far this year thanks to a string of terrific quarterly results that have established the graphics specialist as a top tech play.
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