According to Bank of America analyst Vivek Arya, Nvidia (NASDAQ:NVDA) is anticipated to keep its commanding presence in the AI chip industry even as rivals including Amazon (NASDAQ:AMZN), Broadcom (NASDAQ:AVGO), and Marvell (NASDAQ:MRVL) ramp their efforts to grab greater market share.
Speaking on the Opening Bid podcast of Yahoo Finance, Arya underlined Nvidia’s special benefits, including its capacity to provide whole technology solutions outside of its main Blackwell AI chip. Arya pointed out that rivals sometimes lack the software knowledge and business alliances supporting Nvidia’s market supremacy.While Google (GOOG) has unveiled its Willow AI processor as part of a new supercomputer, Amazon has spent $8 billion in a collaboration with Anthropic to support its AI chip aspirations. Broadcom and Marvell have introduced powerful custom chips, however, Arya pointed out that neither vendor had Nvidia’s network of support and scale.
Based on its market share, which is projected to be 80% to 85% over the next 12 to 18 months, Nvidia is clearly dominant. Forecasting to reach $200 billion in 2025, the company’s data center revenue exceeded Broadcom’s $17 billion and Marvell’s $2-$ 4 billion projections. In 2024 it surpassed $110 billion. “In semiconductors, incumbent scale matters,” Arya added, pointing out that Nvidia’s proven market position provides it an edge in supply chain priority and customer confidence.
This article first appeared on GuruFocus.
