A New Dawn: The Evolution of GPU Accelerator Market Competition

In the ever-evolving landscape of GPU accelerators, recent developments have sparked intense competition between industry giants. Analyst Vivek Arya from BofA Securities has reiterated his buy recommendations for Nvidia Corp with a target price of $925 and for Advanced Micro Devices, Inc with a target price of $195 as both companies navigate through a turbulent market.

Rather than relying on direct quotes, it’s evident that Nvidia’s stronghold in the accelerator market, valued at over $85 billion, is fueled by its dominance in the data center sector. This competitive edge remains the driving force behind Nvidia’s sales trajectory.

The share of Nvidia’s sales from data centers is projected to surpass 85%, marking a significant increase compared to previous years. Meanwhile, AMD’s revenue from GPU sales to data centers has also seen growth, primarily attributed to contracts like the one for El Capitan supercomputer.

Key insights suggest that Nvidia commands nearly 95% of the GPU unit market share, exceeding 900 thousand units in the fourth quarter alone, signifying a remarkable year-over-year surge of over 100%.

Looking ahead, Arya anticipates substantial growth in the $85-90 billion accelerator market, which is predicted to represent only a portion of the larger estimated $180 billion available market, aligning with optimistic forecasts from providers like AMD.

Notable catalysts on the horizon include Nvidia’s GTC event on March 18, focusing on generative AI, alongside updates on Nvidia accelerators and network development. Broadcom Inc’s Analyst Day is expected to shed light on ASIC order offerings and Ethernet network advancements in AI.

FAQ:

1. What are BofA Securities analyst recommendations for Nvidia and Advanced Micro Devices?
– The analyst recommends buying Nvidia shares with a target price of $925 and buying AMD shares with a target price of $195.

2. Why does Nvidia maintain a dominant position in the accelerator market?
– Nvidia’s dominance in the accelerator market, valued at over $85 billion, stems from its advantage in the data center sector.

3. What percentage of Nvidia’s sales is derived from data centers?
– Data center sales are expected to exceed 85% of Nvidia’s total sales.

4. What are the key takeaways regarding Nvidia’s market share in GPU units?
– Nvidia commands nearly 95% of the market share in GPU units, surpassing 900 thousand units in the fourth quarter, marking a year-over-year increase of over 100%.

5. Where do Nvidia’s data center revenues originate from?
– The majority of Nvidia’s data center revenue comes from the Hopper platform (H100/HGX).

6. What are the forecasts for the accelerator market?
– The accelerator market is estimated at $85-90 billion, with a total available market of around $180 billion.

7. What percentage of sales do discrete GPU markets for gaming represent?
– The discrete GPU market for gaming contributes to around 10-15% of Nvidia and AMD sales.

8. What events might impact these companies in the near future?
– Events like Nvidia GTC and Broadcom Inc’s Analyst Day could have an impact on these companies.

9. What are the current stock prices of Nvidia and AMD?
– Nvidia stocks declined by 0.29% to $784.72, and AMD stocks dropped by 0.96% to $176.30.

Definitions:

1. Analyst – a person who evaluates market trends, predicts movements, and provides investment recommendations.
2. Target Price – the projected price at which an analyst believes it is advisable to buy or sell a specific stock.
3. Companies – entities that issue shares and engage in business operations.
4. Quotations – the price at which a company’s shares are available on the stock market.
5. Data Centers – facilities where large amounts of data are stored and managed.
6. GPU – Graphics Processing Unit, a unit that processes graphics in a computer.
7. Quarter – a period of three months.
8. dGPU Market – discrete Graphics Processing Unit market, units that process graphics in computers for gaming and consoles.

For further insights and related information, you can explore the official websites of:
– Nvidia
– Advanced Micro Devices

The source of the article is from the blog regiozottegem.be