Nvidia’s success has raised questions about its competition to build the GPUs needed for major AI models.
The AI trend is changing the market for data center chips. Instead of CPUs, GPUs that accelerate artificial intelligence are used, which is preferred by big cloud computing players such as Alphabet, Amazon and Microsoft. Nvidia’s next-generation processors are in such high demand that the company’s adjusted gross margin rose to 71.2%. Deutsche Bank’s Ross Seymour points to Nvidia’s dominance, which is expected to surpass Intel and AMD in data center sales.
While Intel’s new AI data center GPU is expected to debut in 2025, AMD’s counterparts may not receive general acceptance until 2024, allowing Nvidia to further solidify its dominance.
Source: Ferra
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