NVIDIA has excellent revenue growth over the last few years. It faces competition from other companies that operate in the GPU space. However, it posts a weal personal computer market but still has strong results with a large GPU market share. The recent fiscal earnings from the competitors suggest that it will launch new products that will compete with NVIDIA and gain the lost share of the market.
The toughest GPU competitors of NVIDIA include:
AMD (Advanced Micro Devices)
AMD lost its market share due to stiff competition while NVIDIA gained market share and managed to boost its revenue. The battle between these two companies has risen and it is interesting to see which one wins. NVIDIA offers the most value at the top end and the laptop space as well. The Vega cards that AMD produces are also competitive but not to a point that one can recommend them. The RX 500 series from AMD offers serious competition especially at the entry level of the graphics market in desktops. Stating the clarification from steam on which company dominates the graphics market, it is evident that it is NVIDIA GPUs which record 76 per cent of their use of these items. On the other side, AMD-based chips only make 14 per cent while 10 per cent of them are integrated into the Intel chips. There is a serious gap between these companies though it is a good start. There is a need for AMD to have other two Vega cards in the market if they want to be close to NVIDIA.
Intel Corporation is also a competitor of NVIDIA and it has been seen to do better in termers of the market cap. Massive gains by NVIDIA boosted the market to over $150 billion which is still lower than that of Intel which is at $240 billion. However, the growth trajectory of NVIDIA suggests that it is likely to overtake Intel. NVIDIA has stronger revenue and earnings growth compared to Intel as they are expected to rise to $12.4 billion and earnings to grow to 35%. The growth is to be fueled by the demand for GPUs used for gaming, data centres and professional visualization among others. NVIDIA also has a more balanced growth compared to Intel. The revenue from gaming rose to $1.74 billion as the visualization revenues also grew to $254 million. The soft spot for Intel is PC-centric where the revenues dipped to $9 billion as a result of tougher competition and slower upgrades.
Broadcom Inc has also proven to be a top competitor to outshine NVIDIA. Shares of Broadcom are reasonably priced and in the recent days, they are posting strong growth and they may soon outpace NVIDIA. Broadcom is known to be among the most attractively valued chipmakers because of diversification in the end-market mix, free cash flow potential and consensus estimates. The company has been doing well in earning a larger market share due to the reasons stated above. Particularly, Broadcom is a major supplier of mobile devices and in the case of a new iPhone release, the company will significantly increase its sales. The two companies continue to sit in the middle of important growth markets concerning technology. Thus, companies should experience impressive sales and growth in profits in the coming years. The two are excellent options for investors that look to participate in the next wave of semiconductor market growth.
Profitability Product differentiation Product price Financial strength Reputation Market perception Growth potential Technology Talent
1. Intel AMD Broadcom Intel Broadcom Intel Broadcom AMD Broadcom
2. Broadcom Intel AMD Broadcom Intel Broadcom Intel Intel Intel
3. AMD Broadcom Intel AMD AMD AMD AMD Broadcom AMD
The products include Digital and analogue semiconductors '
The gross profit margin is 43.97% while the net profit margin is 6.16%
It is known for its LED's performance, efficiency and reliability
It offers an extensive portfolio of products at globally competitive prices
It is an American multinational corporation and a technology company
The net income is $9.6 billion
Operates in the industry of semiconductors
It is known as the world's largest manufacturer of semiconductors
It has invented products such as Hyper-threading, Intel X99 and LGA 1150.
The net income in 2017 was 43 million U.S dollars
The company has experienced losses in the recent years losing close to 497 million U.S dollars back in 2016
It is a multinational semiconductor company based in California
AMD generates 60% of its revenue from the computing solutions segment and 40% from the graphics and visual solutions segment
The company has customers locked in for several years because nothing holds them back from leaving even with switching costs
It experiences recurring revenues in that 100% of the sales are transactional and lead to automatically recurring revenues
The cost structure of the company is 30% lower than all the competitors especially in Game-changing
The business model has virtually no limits to growth due to scalability
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