Competitors will inevitably make themselves known.
Any day now, NVIDIA's quarterly report will be published, analysts on average expect the company's revenue to increase more than threefold to $20 billion year-on-year, but representatives of The Futurum Group consider it necessary to warn investors that such rates of NVIDIA revenue growth will not be observed forever. According to them, the company now controls from 98 to 99% of the market for computational accelerators for artificial intelligence systems, and it is simply unrealistic to maintain such a share in a market that is attractive to competitors indefinitely.
Image source: Huang
Already in the middle of this year, according to analysts, NVIDIA will face a slowdown in revenue growth in the server direction, and in fact, the company's revenue may even decline sequentially. In the long term, the company will have five to six competitors in this market, and this will force NVIDIA not only to cede part of its market position to them, but also to sacrifice profit margins.