Summary
- Nvidia's market share has jumped 8% in one quarter, now holding 88% of the GPU market, surpassing AMD and Intel.
- Fluctuations in GPU purchasing trends are driven by AI training systems in hyperscalers, impacting the gaming segment.
- Despite Nvidia's dominance in the AI hardware market, other companies are teaming up to challenge its position on the GPU industry throne.
It's no secret that Nvidia has been storming ahead as of late. Ever since the company perfectly caught the AI wave at the start, Nvidia has become the king of AI hardware to the point that other companies are banding together just to take it down. Now, reports have come in about just how much of a grip Nvidia has over the GPU market, and as you might expect, Team Green has come out on top. However, what you may not know is just how "on top" Nvidia now is.
Nvidia's market share jumps 8% in one quarter to take 88% of the total market
As reported by Jon Peddie Research, Nvidia has had an excellent start to 2024. In one quarter alone, the GPU giant managed to jump up 8% in market share, setting the bar at 88% total. This jump shaves 7% off of AMD's share, putting it down to 19% total. And if you're wondering where that extra 1% went, it came from all of Intel's market share, squashing it down to 0%.
AI training is causing fluctuations in GPU purchasing trends
Dr. Jon Peddie, president of Jon Peddie Research, mentions how the GPU market hasn't really looked "normal" since the 2007 recession. Ever since then, everything from the crypto boom to COVID has messed with the usual patterns. Usually, the first quarter of a year shows a bit of a dip in GPU sales, but because of AI's influence, it may seem like that previous norm may be forever gone:
Therefore, one would expect Q2’24, a traditional quarter, to also be down. But, all the vendors are predicting a growth quarter, mostly driven by AI training systems in hyperscalers. Whereas AI trainers use a GPU, the demand for them can steal parts from the gaming segment. So, for Q2, we expect to see a flat to low gaming AIB result and another increase in AI trainer GPU shipments. The new normality is no normality.
With Nvidia's solid grip on the AI market, it may appreciate a bigger market share for a long time now. However, with other companies banding together to take it down, can Nvidia keep its seat on the throne of the GPU industry?
