NVIDIA Achieves 90% Market Share in AI Chips

In light of the most recent data, NVIDIA has achieved a remarkable market share of approximately 90% in the global AI chip market, setting a new record. This surge in market dominance can be attributed to the escalating demand for generative AI over the past year. Notably, NVIDIA's A100/H100 series AI GPUs stand out as the preferred choice in the current AI acceleration chip market.

Projections from research institutions indicate that NVIDIA aims to sell between 1.5 to 2 million AI GPUs in 2024, potentially tripling its sales compared to 2023. This underscores NVIDIA's undisputed leadership in the industry.

Leading market research firms, including Gartner and Moor Insights & Strategy, forecast a sustained robust growth trend for NVIDIA in the AI chip market throughout 2024. Chirag Dekate, Vice President Analyst at Gartner, acknowledges NVIDIA's role in market creation, putting competitors in a challenging position as NVIDIA continually innovates.

Beyond its hardware prowess, NVIDIA's CUDA software emerges as a critical factor in maintaining its competitive edge. Chirag Dekate emphasizes the strategic significance of software, positioning it as NVIDIA's key differentiator and allowing the company to consistently lead in technological advancements.

NVIDIA's market dominance is a result of its longstanding commitment to AI product development. CEO of Moor Insights & Strategy, Patrick Moorhead, commends NVIDIA for its foresight in collaborating with universities approximately 15 years ago to explore diverse applications for GPUs beyond gaming and visualization markets.

However, challenges to NVIDIA's dominance are emerging, with competitors such as Intel and AMD intensifying efforts to develop competitive AI chips. This competitive landscape includes AMD's launch of the MI300 series accelerator in December 2023 and Intel's ongoing development of the Gaudi3 AI accelerator, following the introduction of Gaudi2.

Additionally, since October 2022, NVIDIA's product sales and market expansion in China have faced challenges due to the impact of U.S. export control policies. In response, NVIDIA is actively developing higher-performing next-generation AI GPUs, such as Hopper H200 and Blackwell B100, while also customizing AI products to comply with regulations for the Chinese market.

In summary, NVIDIA's commanding position in the global AI chip market is a culmination of years of dedication, innovation, and strategic foresight. The company remains poised to navigate evolving challenges and maintain its leadership by advancing both hardware and software capabilities.