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Nvidia Dominates GPU Market as Generative AI Adoption Grows, Analyst Says

Published 24/06/2024, 18:59
Nvidia Dominates GPU Market as Generative AI Adoption Grows, Analyst Says
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Benzinga - by Anusuya Lahiri, Benzinga Editor.

Piper Sandler analyst Brent Bracelin said the breadth of enterprise adoption of generative AI has surprised him again. Nearly half of enterprises (49%) last year were testing Generative Artificial Intelligence. Today, nearly half of enterprises (48%) are implementing GenAI driven by the most popular departmental use cases across support and operations.

Majority (>50%) still view Microsoft Corp (NASDAQ:MSFT) and OpenAI as the most strategic AI vendors, while interest in Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google Cloud Platform, Meta Platforms Inc (NASDAQ:META), and Oracle Corp (NYSE:ORCL) ticked up.

Analyst Harsh Kumar noted GPU accelerators could be an over $400 billion opportunity by 2027E with sustained double-digit CAGR growth. In the GPU space, Kumar noted Nvidia Corp (NASDAQ:NVDA) as the clear leader with over 70% of the total market with Advanced Micro Devices, Inc (NASDAQ:AMD) and Intel Corp (NASDAQ:INTC) competing for the rest of the market. In networking, Broadcom Inc (NASDAQ:AVGO) continues to be the clear leader relative to Marvell Technology, Inc (NASDAQ:MRVL) when it comes to enterprise adoption, as per Kumar.

Kumar noted that 58% of respondents who use Apple Inc (NASDAQ:AAPL) devices expect it to grow as a percentage of total devices (46% in December 2023, and 41% in July 2023), and 42% expect the proportion of Apple devices in their company will remain the same (42% in December 2023, 51% in July 2023).

Photo by PopTika on Shutterstock

Latest Ratings for NVDA

DateFirmActionFromTo
Mar 2022Goldman SachsReinstatesNeutral
Feb 2022Summit Insights GroupDowngradesBuyHold
Feb 2022MizuhoMaintainsBuy
View More Analyst Ratings for NVDA

View the Latest Analyst Ratings

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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