Alphabet's Pichai hints Nvidia's GPUs will remain in demand in AI market

From Nasdaq: 2024-12-03 05:36:00

Nvidia (NASDAQ: NVDA) dominates the AI market with its GPUs, leading to triple-digit earnings growth and a 2,400% stock price increase in the past five years. While major customers like Alphabet and Meta are developing their own chips, recent comments from Alphabet’s Sundar Pichai suggest Nvidia’s products will remain complementary.

Nvidia’s market position is solid with 80% share in the AI chip market. Its latest H200 chip offers double-digit billions in sales and impressive performance improvements. While rivals like Alphabet continue to improve their own chips, Nvidia’s focus on innovation and GPU technology leadership should keep it ahead in the AI chip market.

Recent statements from Alphabet’s Pichai indicate that Nvidia’s GPUs will likely remain in demand as part of a comprehensive solution set for customers. With a forecasted growth in the AI market to $1 trillion by the end of the decade, Nvidia’s leadership and innovation efforts, along with complementary offerings from companies like Amazon, suggest a positive outlook for the company.

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