Catalyst #1: Arm Acquisition- As discussed above, NVIDIA has recently acquired ARM, which is the dominant leader in the semiconductor sector. 90% of smartphones, and a third of networking equipment run at least one arm designed chip. Through Acquiring ARM, NVIDIA is able to enter into the mobile chip industry, which allows them to gain a new revenue stream. In addition, NVIDIA does not have to rely completely on GPU’s, which generates a majority of their sales.
Catalyst #2: Cryptocurrency Mainstream Adoption - Not only has NVIDIA profited from the gaming sector, but it has cryptocurrency miners to thank. According
to RBC Capital markets Analyst Mitch Steves, NVIDIA has earned an additional revenue of $1.95 Billion from Cryptocurrency demand in April 2017 to July 2018. The official estimate from sales to cryptocurrency miners is $602 million, but that number is expected to be significantly higher, as NVIDIA secured 75% of the cryptocurrency GPU as well as this sector continues to grow increasingly as cryptocurrency attains widespread adoption in consumer markets.
Catalyst #3: Gaming industry: The gaming industry is an area of strength for NVIDIA. Many gamers tend to go with high performing chips, and NVIDIA provides that, with their RTX chips. In addition, NVIDIA's revenues have seen huge spurts of growth over the span of six quarters due to their Gaming laptops. The future's looking bright, as NVIDIA has grown at an impressive rate of 16.9% to 174.9 billion, and are expected to grow even more in the coming year. Finally, NVIDIA has partnered with Tencent gaming, who specializes in cloud gaming. Combining this with NVIDIA's GPU chips, enhances the gamers experience. Overall gaming is a key factor for them to continue expanding their company to greater heights.