The AI chip market has witnessed remarkable growth and innovation. This plays a pivotal role in advancing artificial intelligence (AI) technologies. The accelerated AI chip development is a goldmine for big chip manufacturing giants as revenues will escalate in the forthcoming years. According to Stocklytics.com, AI chip market revenues will exceed $126 billion by 2027.
As of 2022, the Artificial intelligence chip market revenues raked in nearly $45 billion and $54 billion in 2023. This emphasized the fast-paced expansion rate of the AI chip industry.
The site’s financial analyst, Edith Reads, comments:
AI chips are the new talk in the tech industry even as Intel plans to unveil a new AI chip, the Gaudi3. This threatens to throw out Nvidia and AMD chips off their game next year. Nvidia is still the dominant corporation in AI chip models. However, its explosive market standings may change given that many new companies are showing interest in the AI chip manufacturing race.
Stocklytics Financial expert, Edith Reads
Nvidia is pre-eminent in Artificial chip development after seeing its stock rise to an astounding 230% year to date. Its chips have flooded the market. Thus cementing a monopolized foothold for itself in the AI industry. Openai‘s ChatGPT uses Nvidia GPUs, which is another reason it is getting the lion’s share of market standings.
Intel is narrowing the gap with Nvidia, currently commanding a 68% market share among consumers. Intel stands out as one of the key contenders challenging Nvidia and AMD for their dominant positions. According to Intel CEO Pat Gelsinger, the demand for Gaudi chips experienced a more than twofold increase within three months, concluding on October 26, 2023. Additionally, Intel is gearing up to launch Gaudi 3 chips later this year alongside its PC chips, undoubtedly influencing the dynamics of the 2024 market.
Last year, AMD chips brought in close to $23 billion by the close of September. Besides, AMD is receiving optimistic reviews from investors who project it will take hold of Nvidia’s market, providing to big tech giants like Microsoft and Meta.
Nvidia, the prominent AI chip distributor, faced challenges when incidents of demand surpassing its supply emerged. Coping with clients’ substantial advance purchases and occasional instances of double ordering became necessary, shedding light on the increasing demand for their chips, particularly the H100 series.
However, with the recent unveiling of its new PC GPUs at CES 2024, Nvidia seems ready to deal with the rising demand for its chips. The GeForceRTXSuper Series represents significant advances in maintaining its market share in 2024.
The AI industry is getting more intricate as time passes. As companies like AMD and Intel try to overthrow Nvidia, consumers are in for new developments from all AI chip significant companies.