Nvidia recorded a very large income in Q2 of the 2024 fiscal year Income of this size is an increase of 101% compare to the same period a year earlier. The majority of this revenue, or around USD 10 billion, comes from data center class GPU chips used for AI systems.
The increase in revenue from the chip sector also set a new record, which has more than doubled compared to the previous quarter, quoted detikINET from CNBC, Friday (25/8/2023).
I’m so confident, Nvidia also believes that their income this quarter will jump 170% to USD 16 billion. Nvidia shares also rose by more than 2%, even though the stock market conditions on Thursday (24/8) were not good.
Then what about the fate of Nvidia’s rivals like AMD and Intel? AMD is still lagging behind in terms of graphics chips, while Intel still can’t keep up with the latest technology trends.
Shares of AMD and Intel fell 7% and 4% respectively after Nvidia reported its Q2 earnings for the 2023 fiscal year.
Nvidia’s condition that has the upper hand is expect. To occur for some time to come because the demand for GPUs for AI will remain high in 2024.
Nvidia’s success also marks a change in the chip market. Which is now starting to switch to chips for data centers. But what is more important is that the most influential component in the data center is no longer a processor or CPU, especially those made by AMD or Intel, but an AI accelerator chip that is the target of many companies.
“NVDA Data Center revenue is now estimated to more than double INTC+AMD Data Center revenue combine, demonstrating the importance of accelerators for today’s Data Center consumers,” said Ross Seymore, analyst at Deutche, in a note to investors.
AMD and Intel are not without effort entering the AI market, but they are struggling in this field. Intel CEO Pat Gelsinger admits that they still see weaknesses in all of its business segments. Including because many cloud companies are more interested in looking for AI processors than Intel processors. Intel’s high-end GPU for data centers like this is Falcon Shores, which is currently still being built and is predicte to be release in 2025.
Meanwhile, AMD had to acquire an AI software company from France called Mipsology to work on AI. They are also currently developing a software suite for AI developers. Software called ROCm is position to compete with Nvidia CUDA.
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