Nvidia fears increased competition

Nvidia fears increased competition

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Nvidia fears increased competition

Nvidia CEO Jen-Hsun Huang has expressed concern about the intensification of AI competitors such as AMD. However, the CEO is not worried about current clients becoming competitors in the market..

Amazon, Facebook, Google and Tesla are among the companies that buy Nvidia graphics cards. Each of them is known to have launched projects to develop graphics chips.Nvidia fears increased competition According to Huang, at the moment Google is the best at this..

Nvidia has been one of the main beneficiaries of the recent wave of interest in artificial intelligence. In just three years, the company’s shares have increased more than ten times. Nvidia continues to talk about the impact of AI on all walks of life, despite the fact that gaming graphics cards remain the company’s largest source of income.

“Nvidia dominates the data center market today and probably has over 90% share”, – said Jon Peddie of CNBC’s Jon Peddie Research. “Nevertheless, AMD has won several large tenders and will continue to increase its presence in the market. I think it’s reasonable to predict a 20/80 split by the end of 2020”.

Nvidia Corp. sales and profits in the second quarter exceeded analysts’ estimates. This was helped by a revival in demand for graphics chips and parts used in data centers. Game chip sales totaled $ 1.3 billion, up 24% year-on-year. Revenue from Nvidia’s second-largest business, data center, grew 3.3% yoy to $ 655 million.

Nvidia stock grew by more than 6% after the publication of the financial report.