NVIDIA is expected to dominate the AI market in 2024 as they are set to sell $40 billion worth of GPU, significantly outpacing AMD & Intel.
NVIDIA's 2024 AI GPU Sales Reportedly Around $40 Billion, 11.4x Higher Than AMD & 80x Higher Than Intel
It isn't surprising to see NVIDIA's performance in the AI market, judging by how they had already set the tone for huge financial figures last year. The more shocking fact to see here is the widening gap between companies involved in the AI race, and while it is disappointing to say this, Intel and AMD are much behind.
Bloomberg Technology reports that NVIDIA's AI accelerators are expected to generate almost $50 billion, whilst competitors like AMD and Intel will only receive a minimal portion, coming at $3.5 billion and $500 million, respectively. The information was disclosed with Intel's CEO Pat Gelsinger onboard after the announcement of Intel's latest earnings.
GPU sales forecasts for 2024:
- Intel: 500 million
- AMD: 3.5 billion
- NVIDIA: 40 billion pic.twitter.com/mjOXI1A839— Tsarathustra (@tsarnick) April 26, 2024
Well, the coverage is more of an analysis of the current state of the markets and shows viewers how big of an impact NVIDIA is actually having. Interestingly, I did the math and realized that Team Green is expected to lock in revenue a whopping eighty times more than Intel, and this is just from their AI accelerator sales. I am not sure whether it includes data center sales as well. Despite that, one can easily witness how big the difference has become, and Intel, a firm that once held the reign of the tech markets, is now struggling to make a difference.
AMD is in a similar position as Intel, but there is optimism around their camp, especially with how the firm is moving ahead with its Instinct lineup of accelerators. AMD's Instinct MI300X AI GPU has managed to attract massive interest from the industry, not only due to the better price-to-performance ratios but also because Team Red has been consistent with its supply as well. AMD might be in contention for coming at the top, but this is too early to say for now. We have much to look ahead to, especially with what the company comes up with in the future. However, despite the AI-heavy influence that AMD is going through, none of their GPUs managed to show up in the latest MLPerf v4.0 benchmarks where Intel was the only benchmarked-alternative to NVIDIA's AI GPUs.
Now, Intel isn't in the position the company hoped for. Team Blue has recently unveiled their Gaudi-3 AI accelerators, which are reported to clock in $500 million in revenue this year, significantly lower than the markets expected.
Despite Gaudi 3 being a current-generation product, the accelerator features relatively older components like the HBM2e, which might downplay its market presence. However, Intel can potentially explore the "China" route with their latest releases, and this path was originally what broadened NVIDIA's AI fortunes before the sanctions came into play.
The future of the AI markets is indeed interesting to witness, and despite complete dominance by NVIDIA, there is still hope and optimism left for other companies as well. However, it's fascinating to see how Team Green has led itself up to the very top, and with the debut of the Blackwell AI GPU architecture, I don't see their dominant position getting broken anytime soon.
News Source: tsarnick
