NVIDIA Data Center GPU Business Predicted to Generate $87 Billion in 2024

[T0@st]

Omdia, an independent analyst and consultancy firm, has bestowed the title of "Kingmaker" on NVIDIA—thanks to impressive 2023 results in the data server market. The research firm predicts very buoyant numbers for the financial year of 2024—their February Cloud and Datacenter Market snapshot/report guesstimates that Team Green's data center GPU business group has the potential to rake in $87 billion of revenue. Omdia's forecast is based on last year's numbers—Jensen & Co. managed to pull in $34 billion, courtesy of an unmatched/dominant position in the AI GPU industry sector. Analysts have estimated a 150% rise in revenues for in 2024—the majority of popular server manufacturers are reliant on NVIDIA's supply of chips. Super Micro Computer Inc. CEO—Charles Liang—disclosed that his business is experiencing strong demand for cutting-edge server equipment, but complications have slowed down production: "once we have more supply from the chip companies, from NVIDIA, we can ship more to customers."

Demand for AI inference in 2023 accounted for 40% of NVIDIA data center GPU revenue—according Omdia's expert analysis—they predict further growth this year. Team Green's comfortable AI-centric business model could expand to a greater extent—2023 market trends indicated that enterprise customers had spent less on acquiring/upgrading traditional server equipment. Instead, they prioritized the channeling of significant funds into "AI heavyweight hardware." Omdia's report discussed these shifted priorities: "This reaffirms our thesis that end users are prioritizing investment in highly configured server clusters for AI to the detriment of other projects, including delaying the refresh of older server fleets." Late February reports suggest that NVIDIA H100 GPU supply issues are largely resolved—with much improved production timeframes. Insiders at unnamed AI-oriented organizations have admitted that leadership has resorted to selling-off of excess stock. The Omdia forecast proposes—somewhat surprisingly—that H100 GPUs will continue to be "supply-constrained" throughout 2024.



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[john_]

There are plenty of analysts out there.

Two questions.
1) Is Omdia someone with a positive past record of predictions, or just a name that some people read about for the first time?

2) Shouldn't articles like this have a disclaimer saying "This article isn't posted to make you rush to buy Nvidia shares"? or something like that?

 

[bug]

There are plenty of analysts out there.

Two questions.
1) Is Omdia someone with a positive past record of predictions, or just a name that some people read about for the first time?

2) Shouldn't articles like this have a disclaimer saying "This article isn't posted to make you rush to buy Nvidia shares"? or something like that?

The first graph says the 23Q4 revenue is ~30B, the second one says it's less than 15B. Just saying...

 

[john_]

The first graph says the 23Q4 revenue is ~30B, the second one says it's less than 15B. Just saying...

Server revenue (whatever that is) vs Nvidia GPU revenue. In both graphs "Nvidia GPU revenue" is the same.

The thing is that we have one of many firms that provide analysis managing to get in tech press sites, probably thanks to that "Kingmaker" title in it's analysis. A firm that I have never heard before. So people should be careful with their money because the stock market goes up and down.

Of course everyone who was predicting Nvidia's share price to drop of a cliff for years now, failed miserably to see what was coming, but one day things could turn south and articles like the above should come - in my opinion - with a disclaimer. Even Wccftech puts disclaimers in articles that talk about stock market stuff.

 

[bug]

Server revenue (whatever that is) vs Nvidia GPU revenue. In both graphs "Nvidia GPU revenue" is the same.

Right you are, I mixed them up. But now that you pointed out my mistake, I realize I'm sure what the difference is. I mean, what server revenue? What servers does Nvidia build. And if Nvidia doesn't built the server and only supplies the GPU, wouldn't that fall into the same "datacenter GPU" category?

 

[john_]

I have no idea what they mean. I guess someone needs to read the whole report.

In any case yesterday the US stock market proved that not every company is immune. AMD, Intel and Nvidia where down and still go down in after hours. AMD toped $227, a crazy valuation to end up $20 lower. Nvidia gone up to $974, it ended up at $875. Intel from $46.63 ended up at $44. Many will call it a "buy opportunity", but who knows? An international incident, or some troublesome news for the US economy and they all three could go down another 30%.

These predictions, especially those with "Kingmaker" titles that flood the web and are in my opinion just marketing moves to make a company more known to the public, are dangerous for readers who are easily convince by the dream of becoming rich.