NVIDIA's AI Chip Market: Peaks at 98%, Eyes 94% in 2024

February 2nd Press Release: In the wake of the explosive growth in the generative AI market, NVIDIA has solidified its position as the leader in artificial intelligence chips (AI) for data centers, outpacing all competitors. According to Fuguo Bank's statistics, NVIDIA currently commands an impressive 98% market share in the data center AI market, while AMD holds only 1.2%, and Intel lags with less than 1%.

As per Counterpoint Research data, NVIDIA's revenue has experienced a remarkable surge from $16.3 billion in 2022 to $30.3 billion in 2023, marking an 86% increase and propelling it to the third-largest global semiconductor manufacturer in 2023. Fuguo Bank's projections estimate NVIDIA's revenue to reach $37.2 billion in 2023, with expectations of reaching a historic high of $45.7 billion in 2024 in the data center market.

It is noteworthy that due to the elevated cost of NVIDIA's AI chips and ongoing supply challenges, some customers are exploring alternative products. Consequently, with AMD and Intel making significant strides in the AI chip market, their market shares are anticipated to gradually increase.

According to Fuguo Bank's forecast, although AMD's AI chip revenue in 2023 is $461 million, it is expected to grow to $2.1 billion in 2024, capturing a 4.2% market share. Intel may also secure nearly 2% of the market share. This could lead to a slight decrease in NVIDIA's market share to 94%.

However, according to data disclosed by AMD CEO Lisa Su in a January 30th conference call, AMD's AI chip revenue in Q4 2023 surpassed the earlier forecast of $400 million. Furthermore, the projected AI chip revenue for 2024 is $3.5 billion, exceeding the previous estimate of $2 billion. If AMD's forecasts are accurate, its market share in the AI chip market for 2024 is likely to increase further.

In the dynamic landscape of the AI accelerator chip market, NVIDIA's A100/H100 series AI GPUs, despite their premium pricing, remain the preferred choice. This year, NVIDIA's more powerful Hopper H200 and Blackwell B100 are set to launch. According to some research institutions, NVIDIA plans to sell approximately 1.5 to 2 million AI GPUs this year, potentially tripling its sales from 2023. This suggests that NVIDIA is poised to address supply bottlenecks, and in the face of competition from AMD and Intel, its pricing strategy may also undergo adjustments.