But then they're not boosting NVidia's competitors either, so wouldn't NVidia stay in the top position in their market ?
The article seems focused more on stock price and where to bet, than the market for GPUs or generic hardware vendors.
The article seems focused more on stock price and where to bet, than the market for GPUs or generic hardware vendors.
Nope; if hypothetically 100% left NVidia, whether to their own hardware or to not use GPUs at all, it'd be easy to say NVidia would be last in the market
Just the hypothetical "if X% of your customers leave, but don't go to competitors, won't you keep your relative market position"
Gaming is not entirely Nvidia's turf either. AMD has 75% of the console market (Xbox and Playstation) and 30% of the PC market.
Looking at these numbers[0] for the console market:
> Sony has sold 61.94M units of PS5 and Microsoft has sold 30.14M units of Xbox Series X|S and Nintendo Switch sold 143.49M units.
Nintendo (NVidia chip) sold 1.5x of Sony and Microsoft combined. Given Switch's success the numbers look reliable to me, then Switch 2 is of course also from Nvidia, and I wouldn't be against it selling well.
[0] https://hookedontech.com/switch-vs-ps5-vs-series-x-console-g...
https://www.ign.com/articles/ps5-has-best-holiday-ever-overa...
In terms of revenue, AMD has the vast majority of the console market.
Yes the Switch sold more units, but that is a smaller SOC with much lower revenue.
Revenue and profit is what matters, not the number of units sold.
Check the price of the PS5 Pro vs Switch.
AMD has dominated the console market since Xbox One / PS4.
Nvidia could be earning $30 - $50 per Switch, while AMD earns $120 - $200 per PS5/PS5 Pro.
There's a kernel of truth in it, but if I was McDonalds I'd care a lot more about what KFC is doing than the market trends of cast iron pans.
It's kind of like how people may make fun of YouTube seeing TikTok as a competitor. But you dig deeper and realize why they decided to get into short for content.
90% of Nvidia's revenue is from datacenters.
If the datacenters stop buying Nvidia's products, and use their own hardware instead, then Nvidia loses 90% of its revenue.
These 90% will be a flash in the pan, same way the COVID revenue was for mask sellers. Sure it feels bad from Nvidia's perspective, but we also can understand that the AI boom would not have kept Nvidia skyrocketing infinitely anyway.
It's a huge shift, but not something that can be acted by Nvidia, nor something they had to care about 5 years ago, nor a primary concern 5 years from now. On the long scale, it's almost as if the big fireworks that pushed Nvidia to its curent valuation just disappears and they're back to selling GPUs to OEMs and consumers primarily.