Data-center sales are expected to rise to $3.46 billion in the first quarter of this year. The figure is up 71% from the fourth quarter, when sales rose to $2.9 billion. The rise is due to strong demand for data-center chips, which are used in gaming.

Data center makes up a “low 20s-percent” of AMD’s enterprise, embedded and semi-custom chips unit. Sales will become more transparent as the company will finally start breaking out data-center sales in its own segment. While AMD and Nvidia fight for shares in server CPUs, Nvidia dominates in its role as an accelerant for data centers.

Jefferies analyst Mark Lipacis has a buy rating and a $370 price target on Nvidia. He says the chip maker “dominates Dedicated Accelerator instances with approximately 80% share” of data-center sales. Read: The end of one-chip wonders: Why Nvidia, Intel and AMD’s valuations have experienced massive upheaval.

Of 39 analysts surveyed by FactSet, Nvidia on average is expected to post adjusted earnings of $1.30 a share. Demand, however, has hardly seemed to be a problem; rather, supply difficulties and ever-increasing roadblocks are the issues. Investors will be looking for any problems similar to Cisco Systems Inc.
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