1 Unlikely Reason Why This Artificial Intelligence (AI) Stock Could Skyrocket in 2024

Artificial intelligence (AI) was a massive growth catalyst for Nvidia (NASDAQ: NVDA) in 2023, as the company’s graphics processing units (GPUs) play a key role in helping cloud service providers train large language models (LLMs) and generative AI applications. It’s a big part of why Nvidia’s data center business took off this year.

When Nvidia released its fiscal 2024 third-quarter results (for the three months ended Oct. 29, 2023) on Nov. 21, the company reported record data center revenue of $14.5 billion, up 279% from the year-ago period. The segment produced 80% of Nvidia’s total revenue, and it seems set to move the needle in a big way for the company in 2024 as well. Clearly, it was a huge growth catalyst.

There is another potential catalyst developing in 2024 that could complement Nvidia’s data center business: Nvidia’s gaming business. The gaming segment was hit hard over the past year thanks to an oversupply of graphics cards caused by a sharp drop-off in sales of personal computers (PCs). The gaming business has regained its mojo, and it could play an important role in powering Nvidia stock’s further surge in 2024 and beyond.

Nvidia’s gaming business could also benefit from AI

Nvidia’s gaming business produced $2.86 billion in revenue in fiscal 2024’s Q3, up a whopping 81% year over year. The segment was Nvidia’s second-largest source of revenue, accounting for nearly 16% of its top line.

Nvidia CFO Colette Kress credited the resurgence in the gaming business to “strong demand in the important back-to-school shopping season, with NVIDIA RTX retracing and AI technologies now available at price points as low as $299.” The company added that the growing library of games that support technologies such as ray tracing has brought back demand for its gaming cards, especially because of the company’s aggressive pricing strategy.

But the notable takeaway from Kress’ statement above is the deployment of AI in PCs, which the CFO believes could be the next big growth…