Nvidia’s AI Chip Dominance Faces Growing Competition
Artificial intelligence (AI) has seen significant advancements over the past 18 months, with Nvidia (NVDA) leading the market for AI-related chips.
Nvidia, once known for PC add-on graphics cards, has transformed its GPUs into the heart of the AI revolution, holding over 90% market share. But fresh competition is coming, with Advanced Micro Devices (AMD) CEO Lisa Su estimating the AI chip market at $400 billion by 2027, and Intel CEO Pat Gelsinger projecting a $1 trillion opportunity by 2030.
Nvidia’s success has opened the door for competitors. The Nvidia H100 GPU, launched in March 2022, significantly impacted financial markets, with its share price more than tripling since its debut, boosting the company’s market value to $2.1 trillion. For its fiscal fourth quarter ended on Jan. 28, Nvidia posted revenue of $22.1 billion, up 265% from a year earlier. A few weeks ago, Nvidia launched its latest marvel, the Blackwell B200 GPU, which CEO Huang says dramatically outperforms the H100.
Nvidia’s most obvious challengers are Advanced Micro Devices and Intel. AMD shares have rallied 71% over the past 12 months, supported by the market’s perception that its new MI300 GPUs will chip away at Nvidia’s market share. Intel is also in the race, with the recent launch of Gaudi 3, its third-generation AI accelerator chips for training and inference.
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Then there’s Qualcomm, another long-term leader in the semiconductor arena. The mobile-phone chip company has taken technologies originally designed for smartphones and applied them to the cloud in an AI inference chip it calls the Cloud AI 100. Qualcomm ultimately seems more interested in the opportunity to serve the edge of the networks, on laptops, and phones.
Four cloud-computing giants—Amazon, Alphabet, Meta Platforms, and Microsoft—are also serious about competing in AI chips. All four are designing proprietary chips for both their own internal needs and to serve cloud customers.
The growing number of new and potential competition isn’t likely to end Nvidia’s reign as the AI chip champion. But it does mean that Nvidia’s unobstructed domination of a $1 trillion market is coming to an end.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
