NVIDIA is already dominating the AI GPU market, but now analyst Ming-Chi Kuo is expecting that the insatiable demand for AI GPUs will see NVIDIA AI GPU shipments surge 150% year-over-year in 2024.
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NVIDIA has already reported absolutely stellar financials driven by its AI GPU dominance, where Team Green has a commanding 90%+ of the AI GPU market share. The company enjoyed an amazing 2023, but in the coming years the company is expecting to drive $300 billion from its AI business alone.
Tianfeng Securities analyst Ming-Chi Kuo says that NVIDIA plans on boosting the volumes of AI GPU shipments in 2024; here’s what the analyst expects to see in 2024:
- NVIDIA AI server shipments are expected to grow 150% YoY or more in 2024, and ultra-low loss CCL is currently in tight supply. In addition to existing high-end general servers and PCs/laptops, future AI PCs will also need to upgrade their CCL to ultra-low consumption.
- The CCL usage of AI servers is about 8 times that of general servers. NVIDIA AI servers are expected to further increase CCL usage after they are upgraded to the B100 solution in 2H24.
NVIDIA has tapped Shengyi Technology as a potential supplier for ultra-low loss Copper-Clad Laminate (CCL). Shengyi Technology is a Chinese-based company that specializes in “electronic circuit base materials” and has gained certification recently for its CCL process, something that will be baked into NVIDIA’s AI server motherboard starting as early as Q2 2024.
CCL, what is it? CCL acts as a substrate for PCBs that provides a stable and conductive surface for the intricate network of circuits that make up electronic devices, which is why NVIDIA needs this for their AI server motherboards. Right now, NVIDIA is using EMC’s EM892K and Doosan’s DS-7409D as their primary CCLs, but the company has plans to switch over to products from Shengyi Technology.
This is because of the insatiable demand for AI GPUs as well as NVIDIA’s next-gen Broadwell GPU architecture and upcoming B100 AI GPUs that will be unleashed in 2024. NVIDIA’s next-gen servers will be using higher CCLs once the next-gen Blackwell B100 AI GPUs have been released.
Ming-Chi Kuo also says that we could expect EMC, Doosan, and Shengyi could have a supply market share of around 60-65%, 20-25%, and 10-15%, respectively, depending on how the market reacts to 2024. What we do know is that the AI GPU business isn’t slowing down, and it’s only ramping up considerably, with NVIDIA set to continue to dominate well into 2024 and beyond.