Nvidia recently became a trillion-dollar company thanks to the AI industry boom generating a relentless demand for Nvidia’s AI chips. This explosive growth is only going to continue next year, as per industry analyst Ming-Chi Kuo.
Kuo reports that Nvidia is going to witness a 150% year-on-year growth in 2024, all thanks to its powerful AI GPUs. This growth figure, while indeed impressive, is unsurprising given Nvidia’s monstrous market share of 90%. The American chipmaker has also been reporting “shocking” revenue for its data center figures for several quarters now.
Nvidia has plans to make a whopping $300 billion out of its AI business and it is looking to expand into new horizons accordingly. Just recently, the company’s CEO, Jensen Huang, met with the Japanese Prime Minister, Fumio Kishida, to discuss local supply chains amid the Japanese market.
Tianfeng Securities analyst Ming-Chi Kuo further states that Nvidia is targeting increased AI shipments in 2024 and it has already secured an ultra-low loss Copper-Clad Laminate (CCL) supplier called Shengyi Technology as one of its partners.
Based in China, Shengyi Technology focuses on “electronic circuit base materials”. The company has recently received certification for its CCL process, anticipated to be incorporated into Nvidia’s AI server motherboards, potentially starting in the second quarter of 2024.
Nvidia choosing to partner with Shengyi Technology could be highly beneficial for the Chinese firm as well since there is a peak demand for CCL, and firms like EMC and Doosan have experienced substantial gross margins and stock growth due to their CCL supply to the AI sector.
Ming-Chi Kuo projects that by 2024, EMC, Doosan, and Shengyi might command supply market shares of approximately 60–65%, 20-25%, and 10-15% respectively, contingent on market dynamics for these companies.
Shengyi Technology has the potential to leverage its partnership with Nvidia by promoting its services to other major players like Intel and AMD. Given the crucial role of CCL in the industry’s shift towards AI PCs, and considering that the ultra-low loss process offered by Shengyi is more powerful and cost-efficient, this could be a strategic move.
If Shengyi capitalizes on this opportunity at the right moment, its revenue is expected to see a significant increase in the upcoming quarters.
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