Following Nvidia’s earnings realease on February 16, 2022;

Dr Lil Read, Analyst in the Thematic Research Team at GlobalData, a leading data and analytics company, offers her view:

“Nvidia’s latest earnings confirm that it is in a strong position to benefit from mega-themes such as artificial intelligence (AI) and the metaverse. Nvidia’s AI chip business is almost as big as its largest business segment, gaming graphics cards, but growing nearly twice as fast. However, Nvidia faces formidable competition where AI hardware is concerned.

“The company’s biggest actual and potential customers–including Tesla, Amazon, and Google–are developing their own AI chips, and, in some cases, have replaced Nvidia technology with their own.”

Mike Orme, Consultant Analyst in the Thematic Research Team at GlobalData, offers his view:

“Nvidia faces mounting competition from left field as a new breed of lavishly funded specialist AI companies such as Cerebras, Graphcore, and SambaNova design AI chips from scratch, rather than adapting GPU technology.

“GSK and Argonne Labs in the US, for example, have both used Cerebras Wafer Scale Engines to power heavy-duty, real-world applications. Further, both reportedly outperform Nvidia GPU clusters while using much less energy. The battle lines have been drawn. How quickly can the upstarts scale up?”