Nvidia Faces Much Tougher Competition in Artificial Intelligence, but Will Still Be OK

Nvidia Corp. (NVDA) is set to face a much tougher competitive environment in the white-hot market for server co-processors used to power artificial intelligence projects, as the likes of Intel Corp. (INTC) , AMD Inc. (AMD) , Fujitsu and Alphabet Inc./Google (GOOGL) join the fray. But the ecosystem that the GPU giant has built in recent years, together with its big ongoing R&D investments, should allow it to remain a major player in this space. This column originally appeared on Real Money, our premium site for active traders. Click here to get great columns like this. It’s a basic rule of economics that when a market sees a surge in demand that leads to a small number of suppliers amassing huge profits, more suppliers will enter in hopes of getting a chunk of those profits. That’s increasingly the case for the server accelerator cards used for AI projects, as a surge in AI-related investments by enterprises and cloud giants contribute to soaring sales of Nvidia’s Tesla server GPUs. Thanks partly to soaring AI-related demand, Nvidia’s Datacenter product segment saw revenue rise 186% annually in the company’s April quarter to $409 million, after rising 205% in the January quarter. Growth like…


Link to Full Article: Nvidia Faces Much Tougher Competition in Artificial Intelligence, but Will Still Be OK

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