NVIDIAS’ BATTLE FOR AI CHIP SUPREMACY

A TEACHING CASE STUDY

INTRODUCTION

Nvidia founded by Jensen Huang in 1993, leading in GPUs and AI.

Facing competition from Huawei, AMD, and Intel in AI-related

technologies.

Nvidia's market dominance with 80% share in GPU semiconductor chips.

Investors closely monitoring Nvidia's performance amidst rising

competition and technological advancements.
IMPACT OF COMPETITORS &
INVESTOR SENTIMENT
Intensified competition from Huawei, AMD, and Intel in AI chip innovation.

Huawei's Ascend 910B chip competes directly with Nvidia's A100 chip.

Investor sentiment influenced by product innovations and competitor

dynamics.

Emerging challengers in AI chip innovation shaping industry landscape

and investor perceptions.
COMPANY BACKGROUND & HISTORY

Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, Nvidia
aimed to develop visual computing solutions.

Early focus on GPU development for gaming and multimedia applications,

culminating in the launch of the NV1 GPU in 1995.

Introduction of GPU architectures like the GeForce 256 GPU in 1999.

Expansion into data centers, and AI, marked by the introduction of CUDA,
TEGRA processors and the TESLA GPU.
KEY MILESTONES & INNOVATIONS

CUDA (2007): Groundbreaking for parallel and GPU-accelerated computing

Tegra Processors (2008): Targeting mobile and embedded device markets.

Deep Learning (2007): Advancing AI research and applications.

Nvidia Drive (2015): Providing AI solutions for autonomous driving.

FINANCIAL PERFORMANCE
OVERVIEW
Nvidia's full-year revenue for 2023 reached $60.92 billion, reflecting significant
growth and stability in its financial performance.

The company's net income for the same period amounted to $29.76 billion,
showcasing robust profitability.

With total assets totaling $65.73 billion and total equity of $42.98 billion, Nvidia
demonstrates a strong financial position.

Despite fluctuations, Nvidia's long-term debt decreased to $8.459 billion in

2024, indicating prudent financial management.
SEGMENT PERFORMANCE
HIGHLIGHTS
Nvidia's data center segment achieved record-breaking revenue of $18.4 billion in
Q4 2024, up 27% from the previous quarter.

Collaborations with industry giants like Google and Amazon Web Services
strengthened Nvidia's position in the data center market.

In gaming, Q4 revenue reached $2.9 billion, marking a 56% increase from

the previous year.

The professional visualization segment saw a notable 105% surge in Q4

revenue, reaching $463 million.
NVIDIA VS. HUAWEI: AI CHIP
COMPETITION
Nvidia and Huawei compete fiercely in developing high-performance AI
processors.

Both companies heavily invest in R&D for more efficient AI chips.

Nvidia's CEO acknowledges Huawei's formidable role in AI chip

development.

Outcome holds significant implications for computing and AI technology.

IMPLICATIONS & FUTURE TRENDS

Huawei's moves challenge Nvidia's revenue, especially with US-China trade tensions.

Huawei's Ascend chips, like the 910B, compete directly with Nvidia's A100.

Huawei's push could reshape the AI chip market, especially in China.

Nvidia vs. Huawei rivalry likely to intensify, shaping AI innovation.

CONCLUSION

Nvidia faces escalating competition, notably from Huawei, in the AI chip-making

industry.

Continuous innovation and strategic adaptation are crucial for maintaining

market dominance.

Recent developments, such as US restrictions and Huawei's expansion,

necessitate strategic reassessment.

Navigating geopolitical complexities is essential for safeguarding market

position and mitigating risks.

Nvidia's future success hinges on innovation, agility, and strategic

foresight in shaping the future of computing.
THANK YOU