The graphics card market is poised for a blockbuster year, with industry analysts forecasting that the sector will reach a remarkable $100 billion valuation in 2024. But this surge isn’t being driven by gamers or creators—it’s all about AI. According to a new report from Jon Peddie Research, the lion’s share of this growth stems from the booming demand for AI infrastructure, with Nvidia cashing in as the primary provider. Known for its dominance in the data center hardware market, Nvidia has emerged as the go-to supplier for companies building AI-capable data centers, leveraging technology initially honed for cryptocurrency mining just a few years ago.
To put this growth into perspective, global smartphone revenue in 2023 hit around $500 billion, and car sales for the top 20 manufacturers reached $2.1 trillion. Nvidia’s high-performance AI chips, expected to cost upwards of $30,000 to $40,000 each, make even top-tier gaming GPUs like the RTX 4090 seem budget-friendly by comparison. This shift to ultra-premium hardware for AI applications has solidified Nvidia’s market position, though competitors like Intel, AMD, Qualcomm, and Broadcom are racing to catch up.
The report emphasizes that GPUs now touch nearly every tech-driven industry, from PCs and smartphones to cars and VR. AI data center sales may be taking a massive slice of the revenue pie, but GPUs are still indispensable across a diverse array of products, including integrated graphics in mobile devices and specialized hardware for wearables and autonomous vehicles. As Nvidia focuses on business-to-business AI hardware, it could create an opening for AMD, Intel, and others to seize a larger share of the consumer GPU market in mid-tier and entry-level segments.
The big question remains: how will Nvidia balance AI-focused data center demand with consumer GPU production? As Nvidia shifts its attention toward high-margin enterprise clients, the door may open wider for other players to cater to the needs of gamers, streamers, and consumers looking for affordable, powerful graphics solutions. Regardless, the GPU market is on a gold rush trajectory, with AI poised to lead the charge in 2024.
