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

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 MSFT and OpenAI as the most strategic AI vendors, while interest in  Alphabet Inc GOOG GOOGL Google Cloud Platform, Meta Platforms Inc META, and Oracle Corp 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 NVDA as the clear leader with over 70% of the total market with Advanced Micro Devices, Inc AMD and Intel Corp INTC competing for the rest of the market. In networking, Broadcom Inc AVGO continues to be the clear leader relative to Marvell Technology, Inc MRVL when it comes to enterprise adoption, as per Kumar.

Kumar noted that 58% of respondents who use Apple Inc 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).

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