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NVIDIA (NVDA) GeForce NOW Adds New Games From Electronic Arts

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NVIDIA Corporation (NVDA - Free Report) recently announced that it has partnered with Electronic Arts (EA - Free Report) , a global leader in digital interactive entertainment, to bring in more hit games to its cloud gaming platform, GeForce Now.

This move will provide a further boost to NVIDIA’s cloud gaming portfolio. The company will initially be adding five popular games of Electronic Arts – Battlefield 1 Revolution, Apex Legends, Mirror's Edge Catalyst, Dragon Age: Inquisition and Unravel Two. All these games of Electronic Arts will be streamed via the GeForce NOW Alliance network.

This agreement will not only help the gamers forego downloading, patching and updating games but also save the game developers from their porting tasks.

GeForce Now streams more than 20 million hours of gameplay per month from data centers located across 70 nations globally. This cloud-native platform will give Electronic Arts access to over 12 million gamers.

The latest move will expand Electronic Arts’ access to a broad base of gamers worldwide, including those who utilize underpowered or incompatible devices like tablets, mobile phones, non-gaming PCs, Macs, and Chromebooks.

NVIDIA is benefiting from the coronavirus-induced work-from-home and learn-at-home wave. Strong growth in GeForce desktop and notebook GPUs is driving its gaming revenues. Subscriptions for GeForce Now doubled last year.

Since first-quarter fiscal 2021, the company has been reporting revenues under two segments — Graphics and Compute & Networking. Graphics, which includes GeForce GPUs for gaming and PCs, and the GeForce NOW game streaming service and related infrastructure, accounted for 60% of the fiscal 2022 second-quarter revenues. In fact, this segment’s top-line figure surged 87% year over year and 13% sequentially to $3.91 billion.

Market-platform wise, gaming revenues represented 47% of total second-quarter revenues. The figure soared 85% year over year and 11% sequentially to $3.06 billion.

Zacks Rank & Other Key Picks

NVIDIA currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector are Avnet (AVT - Free Report) and EPAM Systems (EPAM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate of Avnet and EPAM Systems are pegged at 25.4% and 26.5%, respectively.

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