Dow Jones/Market Watch has an opinion piece (may be worth a look) arguing that NVDA's strength in data center GPUs, networking, services, and emerging products reinforces 'moat ' the company's competitor:
In short:
- Leadership in AI and GPUs:
- Nvidia's data center segment saw revenue exceed $30.8 billion in Q3 2024, a 112% YoY increase, driven by demand for AI and GPUs.
- Strategic advances in GPUs (eg, Blackwell GPUs) and services reinforced market leadership.
- Strong software ecosystem:
- CUDA and Nvidia's software tools provide a significant competitive advantage in the AI market.
- Frequent software updates and ecosystem improvements maintain its position in the market.
- Service Extension:
- New services such as AI Foundry and Nvidia Infrastructure Management Services aim to capture higher AI infrastructure margins.
- Emerging Industries:
- Investments in automotive, robotics, the Omniverse, and Earth-2 projects are opening up new revenue streams.
- PC and Gaming Market:
- Nvidia continues to lead gaming GPUs and explore AI-enabled PCs to compete with Intel, AMD, and Qualcomm.
The opinion piece also covers the risks facing the industry. He concludes that despite a high valuation, Nvidia's diversified portfolio and strategic investments position it well for continued growth in 2025 and beyond.
