According to a fresh report from investment bank JPMorgan, chip designer NVIDIA Corporation is slated to benefit from artificial intelligence growth greatly. NVIDIA shook the stock market with its earnings report for the first quarter of 2024, where it beat analyst revenue guidance for the current quarter by miles and pointed out a hefty $1 trillion market from firms choosing to shit to artificial intelligence platforms for their data center operations. Building on this, JPMorgan is out with some fresh estimates for NVIDIA, where it believes that the firm can scoop as much as 60% of artificial intelligence revenue this year on the back of its hardware products, such as graphics processing units (GPUs) and networking products.
At the same time, AMD continues to lead Intel in CPU growth in the cloud computing market, but Intel remains the dominant products provider, according to data from KeyBanc.
AMD Outpaces Intel In Cloud Instances Growth But Remains Far Behind In Market Share
The report from JPMorgan, shared by MarketWatch, outlines the bank's expectations of the revenue flow from artificial intelligence products this year. In the aftermath of NVIDIA's blockbuster earnings earlier this week, banks jumped in the fray and started out with their optimistic forecasts for the remainder of this year.
The first of these came from Bank of America, and it covered the prospects of the Taiwan Semiconductor Manufacturing Company (TSMC). BofA shared that NVIDIA's expectations of bringing in $11 billion in revenue during the current quarter will also translate well for TSMC as they might end up boosting its revenue in the second half of 2023. Its report also reiterated rumors that TSMC's 5-nanometer chip fabrication facilities see higher utilization levels due to strong product demand from NVIDIA.
Now, JPMorgan believes that NVIDIA will be the primary beneficiary of artificial intelligence spending this year. Its report claims that as much as 60% of the revenue from AI products in 2023 will land into NVIDIA's pockets through spending on GPUs and networking interconnects. In second place is Broadcom, with its application specific integrated circuits (ASICs) that are expected to take as much as 13% of the revenue pie.
TSMC ranks relatively low in the list, ranking 17th with an expected revenue representing 3% of the overall spending. While Intel and AMD also make an appearance, their revenue percentage is negligible and sits below one percent. Intel is expected to provide AI server CPUs, while AMD is expected to provide both server CPUs and GPUs.
Moving toward the cloud computing market estimates from KeyBanc show that AMD's market share in the market is continuing to grow faster than Intel's. Its data reveals that AMD's market share grew by a whopping 77% annually and 3% month on month in April. In comparison, Intel's monthly growth was flat, while its annual growth was a more subdued 13%. Finally, NVIDIA's market share, led by Ampere products, grew by 28% annually and 4% monthly.
Despite the strong market share gains by AMD, Intel is still the dominant player in the cloud market. It commands more than half of the market, and AMD is still in second place, with NVIDIA in a distant third. KeyBanc is quite optimistic about AMD's data center prospects this year as well, with its analyst note shared earlier this year outlining that the firm might gain eight percentage points in the server market this year, with a market share of 30% by the end of this year.
source https://wccftech.com/nvidia-leaves-amd-intel-in-the-dust-in-jpmorgans-artificial-intelligence-report/