NEW YORK (TheStreet) -- Nvidia (NVDA) shares are up 1% to $22.35 in early market trading on Monday after the PC graphics card manufacturer said that it expects to see annual cloud computing revenue of $1 billion in two to three years, according to Reuters.
Cloud computing is the company's fastest growing segment with revenue from the sector expected to increase between 60% and 70% annually, Nvidia CEO Jen-Hsun Huang told reporters ahead of the company's presentation at Computex, Asia's largest tech trade show.
The company's cloud computing graphics technology allows users to play graphics heavy games over the Internet.
Computex runs for five days this week in Taipei, Taiwan and features over 1,000 exhibitors at over 5,000 booths and features presenters such as Intel (INTC), Broadcom (BRCM), Nvidia and Taiwan Semiconductor (TSM).
TheStreet Ratings team rates NVIDIA CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NVIDIA CORP (NVDA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."