That’s right, Nvidia is growing faster than any tech company and probably more than any other company in the world, something unimaginable 10 years ago when it was just the main AMD rival. Well, the explanation is quite simple, well.. not really, but let’s put this article in context first so we can understand it better.
Until 2021, almost all of Nvidia’s revenue came from gaming and that’s not a surprise because when we all think of this company, the first thing that pops up in our mind is probably all things related to gaming and graphic cards, but a great part of Nvidia’s efforts are now pointing to the corporate world where there are giant infrastructures that are in charge of processing lots of data day by day, and in recent years the rise of AI made possible for Nvidia concentrate more of those efforts in data centers because it’s predicted that in 2025 this market is going to be massive as we can see in this graphs.
Nvidia Revenue breakdown (image source)
To understand the magnitude of this new market and the potential it will unlock for the tech industry, we have to take a look at the amazing chip they launched this year. The Blackwell chip is the most powerful chip ever made that introduces six innovative technologies for accelerated computing. These advancements will drive progress in data processing, engineering simulation, electronic design automation, computer-aided drug design, quantum computing, and generative AI. “For three decades we’ve pursued accelerated computing, with the goal of enabling transformative breakthroughs like deep learning and AI,” said Jensen Huang, founder and CEO of NVIDIA.
In the first quarter of next year, Nvidia will receive most of its revenue from the data centers business. This is not surprising considering the widespread use of AI technology across companies and individuals globally. This technology heavily relies on Nvidia’s GPUs and TPUs, companies like Tesla, AWS, Microsoft, and Meta need the power that provides the Nvidia hardware to develop innovative solutions that will sooner or later be in our hands and at the service of humanity.
Now you’re probably wondering where are Nvidia’s direct competitors, and the answer is simple, there aren’t. Well technically they have competitors obviously and more than ever but Nvidia is taking giant steps compared to others, we can consider Intel and AMD as their main competitors, and other companies like OpenAI, Microsoft, and Apple are competing as well but they are approaching the AI revolution differently and not at the same rhythm that Nvidia is used to.
The main reasons that make Nvidia move this fast is that their organization invests plenty of capital in research, and its very enviable work culture which, in the end, contributes to their massive growth from the inside. Recently, it was known that Nvidia was training AI models with videos from YouTube and Netflix, which shows how ambitious this company is and how seriously they are taking its role in the AI field.
We can get various conclusions from this article, but the main ones are that Nvidia is very good at seeing what the future may need so they can get over their competitors, also we’ve seen that their community is very active which shows that they’re very interested in listening to their users, but maybe what makes Nvidia this giant company is something different, some of you will say is luck, others will say that is a very talented company or maybe that Jensen Huang is a Wizard, whatever the Nvidia’s secret is, the truth is that the key to success is a mix of every little detail, and Rome wasn’t built in one day, neither do any successful company.
