Year in Review: NVIDIA Shrugs Off AI Competition
AI is anticipated to persist in the semiconductor industry into 2025. Explore a detailed market report covering hyperscaler demand, NVIDIA’s dominance, China’s challenges, and other critical market trends.
Artificial intelligence (AI), particularly generative AI, sustained robust market demand within the semiconductor industry throughout 2024. While this momentum is anticipated to persist into 2025, it may not match the rapid growth observed in 2023 and 2024. NVIDIA dominated the merchant silicon datacenter AI accelerator players and had a roughly 3× revenue increase in 2024, leaving little market share for others. Hyperscalers continue to prioritize investments in their proprietary devices, while many also diversify by incorporating NVIDIA accelerators. China attempted further self-sufficiency efforts out of necessity with tough trade restrictions employed by the US and other countries. Datacenter power consumption has been heating up for quite some time but reached a new boiling point in 2024.
