Analyst: NVIDIA is the 'kingmaker' with projected $87 billion in AI, data center GPUs in 2024

Analyst firm Omdia predicts NVIDIA could make $87 billion from its data center GPUs alone in 2024, calling the GeForce giant the "kingmaker."

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NVIDIA has already lit up the stock market, bursting through the $2 trillion market capitalization milestone, and this year will only see them push harder into the AI market. NVIDIA has been leading the AI market with an estimated 90%+ market share with its AI GPU hardware, but next-generation AI GPUs are around the corner, and so are next-generation Blackwell-based GeForce RTX 50 series GPUs. "Kingmaker" sounds right.

Omdia's Cloud and Data Center Market Snapshot report for February is healthy for NVIDIA. Server and data center revenues in Q4 2023 were up 21.5% compared to Q3 2023 and 12.7% higher than they were in Q4 2022. In Q1 of 2023, the company had a server BOM of 15%, but that rocketed up to 44% in Q4 2023. This means that data centers are pushing more of their budgets into NVIDIA GPUs than ever before, and they're buying them quickly.

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Instead of upgrading CPUs, RAM, and storage, it appears data centers are prioritizing buying NVIDIA GPU hardware, with Omdia saying NVIDIA made $34 billion in 2023 thanks to its excellent data center GPUs, predicting that will continue this year -- and big time -- with a 150% increase over 2023 with $87 billion in revenue.

NVIDIA has been kicking ass and taking names in the AI business, with H100 AI GPUs supply-constrained late last year, but that's been slowly getting better. We've also seen customers selling their new NVIDIA AI GPUs and their excess AI GPU hardware as they don't need it.

NVIDIA kicks off its GPU Technology Conference (GTC) on March 18, where we should be introduced to the beefed-up H200 AI GPU with HBM3E memory, and the next-gen Blackwell GPU architecture and I'm sure a performance tease showing utter AI GPU leadership with a next-gen B100 AI GPU reveal.

We'll have it all once GTC 2024 kicks off on March 18.