Nvidia targets $1 billion revenue from cloud computing in 3 years

Nvidia says its revenue from cloud computing will hit the $1 billion mark within the next two to three years. It claims that the increase in revenue will be propelled by the demand for big data analysis, and in turn spur the growth of its graphics chips.

Soon after Nvidia announced it expected cloud computing revenue, the shares of the company went up 1% to $22.35 in early market trading on Monday, according to The Street.

Before the company's presentation at Computex, which is Asia's largest tech trade show, Reuters cited CEO Jen-Hsun Huang as saying that Cloud computing is the company's fastest-growing segment, with revenue increasing at about 60-70 percent a year.

With the help of Nvidia's cloud computing technology people can play graphics-heavy games over the Internet.

Computex is a five-day long exhibition being held this week in Taipei, Taiwan. The exhibition will host more than 1000 exhibitors at over 5,000 booths. Intel, Broadcom, Nvidia and Taiwan Semiconductor (TSM) will be the main attractions of the show.

It was in 2012 when Nvidia introduced cloud computing technologies capable of using graphics processing unit called the GPUs. This also allowed users to simultaneously share GPUs.

The cloud computing technology has kept on improving and updating itself over the years. The technology can be used as for different types of applications like voice command which is similar to Apple's voice based assistant Siri.

Aside from making computing and gaming graphics, Nvidia is also shifting towards automotive graphics by entering into a partnership with electric carmaker Tesla Motors.

It also introduced a hardware and software development kit for self-driving and self-parking systems for Tesla, Rolls Royce, Bentley, and Aston Martin.

According to ZDnet, Huang attributes the company's push into the enterprise market as propelled by its partnership with VMware, which gave it the opportunity to reach up to 80 percent of corporations,

In Q1 2015, Nvidia reported net income of $134 million, or 24 cents per share.