Who are Nvidia's biggest competitors?

Wall Street is waiting on the release of Nvidia's (NVDA) second quarter earnings results on Wednesday, August 28. Moor Insights & Strategy Founder, CEO and chief analyst Patrick Moorhead joins Yahoo Finance to discuss the company's biggest competitors.

"First and foremost, it's AMD (AMD)," Moorhead notes, adding that "an increasing risk are the hyperscalers developing their own chips, you have Meta (META), Microsoft (MSFT), Google (GOOG, GOOGL) and Amazon (AMZN) all doing a highly efficient version. It's not a GPU out there, but it's a very highly efficient version."

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This post was written by Mariela Rosales.

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Video Transcript

Not, not near to intermediate term path but longer term Patrick who poses in your opinion, the greatest competitive challenge to Jensen Wong over there?

I mean, is it Lisa Sue and her team in a MD?

Is it Nvidia's own customers?

The cloud giants?

Yeah, actually it it's both I think first and foremost, it's a MD because you have GP US with AM DS GP US.

But what a an increasing risk are the hyper scalars developing around chips?

You have meta Microsoft, Google and Amazon all doing a highly efficient version.

It's not a GP U out there, but it's a very highly efficient version.

Now, the biggest beneficiary there is going to be Broadcom and I would say the second is Marvel as they are the houses that fulfill and provide these to the hypersal.

There's no one comfortable right now having NVIDIA with 90% market share and the ecosystem is doing what it does.

It is bringing in new players and new technologies to lower the risk and potentially lower the price.

Patrick, what is the timeline look like for that?

When when you talk about the competitors, maybe eventually g not not so much gaining an edge but able to better compete with what NVIDIA is putting out.

When, when we talk about this moat that NVIDIA has built, how long do you expect that to last?

So the moat is, is eroding, it's big.

And let's just say, you know, in, in simple numbers, uh NVIDIA has 95% market share today.

Uh I could see a MD ending ending their quarter, not for the year.

Uh moving that from 5 to 10% uh market share and then into 2025 you will see Intel come in, you will see more hyper scalars doing the, the their own silicon.

You could see a an erosion, uh let's say to the 25% let's say if anybody has a 75% market share uh by the end of of 2025 maybe it's middle of the year, maybe it's the end of the year.

But these things are, are, are all moving.

Final question, Patrick, let's talk about China.

Uh obviously, Beijing would like to be a global technology powerhouse and very obviously, the US government would like to thwart those efforts.

What does that mean for NVIDIA and other companies?

Uh you cover Patrick?

Yes.

So I think for the most part, investors have factored in risk uh of, of China and, and some, it's upwards of 30% and o others, it's down in the 10% zone.

I think as it relates to specifically for the highest performance.

Uh It is, it has been, it will continue to be very hard uh for China, whether it's uh Huawei or a few other indigenous plays uh in there to be able to get to the price performance of, let's say an A MD or NVIDIA can do.

Now, you can get the performance, you just need a lot more clusters and a lot more power and a lot more uh data center.

So it, it is a risk.

But I do believe that both a MD and NVIDIA will have China versions, NVIDIA does have a China version already, but a China version of its GP US that are tuned down with the latest architecture.

All right, Patrick Moorhead, we have to leave it there.

Always great to get your insight, especially ahead of a day.

Like tomorrow, we appreciate your time.