Nvidia's artificial intelligence "gold rush" began last year, leaving competitors with no opportunities, thanks to the company's artificial intelligence arsenal. Nvidia's data center and artificial intelligence GPU shipments are expected to reach nearly 4 million units in 2024, which is an incredible growth for the company as its goal is to maintain its dominant position in this segment in the coming years with its rich products and robust roadmap.
This is the first time we have seen Nvidia release shipment volume data, as in the past, these data were only estimated based on overall revenue.
2023 marks the beginning of Nvidia's "super cycle" in the data center and artificial intelligence markets, thanks to the huge demand for Hopper GPUs and products for the company, as well as the rise of the artificial intelligence boom, with all other large technology companies participating in the integration of this technology. Due to the necessity of having sufficient computing power, Nvidia is the company best suited to capitalize on this hype, and interestingly, we now have data to support this claim.
According to TechInsights, Nvidia's data center GPU shipments in 2023 were approximately 3.76 million units, nearly 1 million more than in 2022. The company successfully gained a market share of up to 98%, devastating hundreds of competitors such as AMD and Intel. The total shipment volume of data center GPUs in 2023 is approximately 3.85 million pieces, and considering Nvidia's share in it, it can be said that competitors have no chance of winning.
The report shows that NVIDIA has a market share of 98% with revenue of $36.2 billion, three times that of 2022. Interestingly, due to their shipments of only around 500000 chips (AMD 500000, Intel 400000), their share of total market revenue is very small.
TechInsights stated that there is currently not enough artificial intelligence hardware to sustain market demand, and since most of the demand is actually for Nvidia products, it is certainly difficult for competitors to make significant progress now, but there is still hope because analysts are looking for diversification.
As Blackwell products enter the supply chain, we can imagine how attractive NVIDIA will be in the market. Although alternative products from competitors such as AMD and Intel are gaining market favor, more effort is needed to challenge Nvidia's power.
