Data Center GPU Market

Data Center GPU Companies - NVIDIA Corporation (NVIDIA) and Advanced Micro Devices, Inc (AMD) (US) are the Leading Manufacturers

The data center GPU market is projected to grow from USD 14.3 billion in 2023 and is projected to reach USD 63.0 billion by 2028; it is expected to grow at a CAGR of 34.6% from 2023 to 2028.

The growth of the data center GPU market is driven by rising focus on parallel computing in artificial intelligence (AI) data centers, growing use of deep learning technology in big data analytics, increasing data traffic and need for high computing power.

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Major Data Center GPU Suppliers Include: 

  • NVIDIA Corporation (NVIDIA) (US)
  • Intel Corporation (Intel) (US)
  • Advanced Micro Devices, Inc (AMD) (US)
  • Samsung Electronics Co., Ltd. (Samsung) (South Korea)
  • Micron Technology, Inc. (Micron) (US)
  • Qualcomm Technologies, Inc. (US)
  • International Business Machines Corporation (IBM) (US)
  • Google Inc. (Google) (US)
  • Microsoft Corporation (Microsoft) (US)
  • Imagination Technologies (UK)
  • Advantech Co., Ltd. (Taiwan)

Key strategies adopted by the players in the data center GPU market ecosystem to enhance their product portfolios, increase their market share and expand their presence in the market mainly include new product launches and partnerships and acquisitions.

For instance, in August 2023,  NVIDIA Corporation (US) announced NVIDIA OVX servers featuring the new NVIDIA L40S GPU, a powerful, universal data center processor designed to accelerate the most compute-intensive, complex applications, including AI training and inference, 3D designs and visualization, video processing and industrial digitalization with the NVIDIA Omniverse platform.

In June 2023, Intel Corporation (US) introduced the Intel Arc Pro A60 and Pro A60M as new members of the Intel Arc™ Pro A-series professional range of graphics processing units (GPUs). The new products are a significant step up in performance in the Intel Arc Pro family and are carefully designed for professional workstations users with up to 12GB of video memory (VRAM) and support for four displays with high dynamic range (HDR) and Dolby Vision® support.

NVIDIA Corporation is among the world leaders in the visual computing business. It has been a prominent player in providing hardware and solutions. The company’s broad portfolio of hardware, software, and services allows it to serve various verticals, such as gaming and entertainment, workstation computers, and the public cloud. The company has a well-established geographic footprint and mainly deals with major OEMs/ODMs worldwide. The company continues to lead in the development of new products for the AI market. It has a strong focus on R&D, which helps establish a strong position in the data center accelerator market. Nvidia's dominance in the GPU data center market provides the company with substantial financial resources for research and development. The company invests heavily in advancing GPU technology, developing new architectures, and enhancing AI-specific features. This continuous innovation allows Nvidia to stay ahead of competitors in offering the cutting-edge solutions for AI tasks like real-time ray tracing in the improvement of the image processing and hardware-accelerated deep learning. Nvidia GPUs are renowned for their high-performance computing capabilities, particularly in tasks like deep learning and AI training. Its GPUs are specifically designed to handle massive parallel processing making them well-suited for AI workloads. Strategic initiatives, such as mergers and acquisitions, are highly complementary to the existing business and could offer significant growth opportunities to the company. The company’s expertise is expanding in AI, machine learning, and deep learning technologies. It collaborates with technologically advanced organizations from different regions to enhance its product portfolio. 

AMD offers a wide array of products pertaining to computer processors and related technologies for business and consumer applications. The company is focused on product development and launches, collaborations, and partnerships to compete in the data center GPU market. It offers various products related to processors and GPUs for customers and businesses.

The company reported an improvement in financial performance owing to the multiple product launches in the data center accelerator market during the review period. A strong financial performance improves investors’ confidence in the company and enables it to pursue its expansion plans. Advanced Micro Devices, Inc is strongly focused on adopting innovation-based strategies to sustain itself in a technologically advancing industry. Using this strategy, the company is focused on improving product performance and developing new product designs. The company focuses on launching innovative and high-performance processors and GPU-related products. This helps the company establish a large customer base and increases its products' scalability.

AMD intends to expand its manufacturing and innovation capabilities to meet the growing demand for its products. In July 2023, AMD announced plans for continued growth in India through an approximate USD 400M investment over the next five years. The planned investment includes a new AMD campus in Bangalore, Karnataka that will serve as the company’s largest design center. Recently, the company signed new contracts and agreements to meet the rising demand for the company's services. This would allow the company to improve its market position further.

Related Reports:

Data Center GPU Market by Deployment Type (Cloud, On-premise), Function (Training, Inference), End User (Cloud Service Providers, Enterprises, Government) and Region ( North America, Europe, Asia Pacific, ROW) - Global Forecast to 2028

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Data Center GPU Market Size,  Share & Growth Report
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