Nvidia dominates GPU market, with AMD and Cerebras as competitors, but not close

From NASDAQ: 2024-11-06 08:00:00

Artificial intelligence (AI) has been a dominant force in financial news and stock markets, with Nvidia (NASDAQ: NVDA) emerging as a top player, boasting a 900% share price increase in just two years. Nvidia’s compute and networking business, including GPUs and data center services, has secured 88% of the GPU market.

Advanced Micro Devices (NASDAQ: AMD) is Nvidia’s primary competitor, experiencing an 18% revenue increase YoY, with impressive Q3 earnings. However, AMD’s revenue and market presence pales in comparison to Nvidia, indicating a significant gap in size and growth trajectory.

Cerebras Systems, a potential rival to Nvidia, focuses on wafer-scale engine (WSE) chip architecture, offering substantial compute power and memory. While Cerebras has shown impressive revenue growth, customer concentration and size limitations may hinder its ability to challenge Nvidia’s dominance in the market.

While Cerebras presents an intriguing opportunity, its size and customer base are not yet sufficient to pose a threat to Nvidia. As an investor, Nvidia’s robust financials, growth trajectory, and market dominance make it a solid choice for long-term investment prospects.



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