Nvidia is a U.S. technology firm specializing in the design of processors and chipsets, including graphics processing units (GPUs) for the gaming and professional markets. Headquartered in Santa Clara, California, the company was founded in 1993 by Jensen Huang. Huang has been Nvidia’s president and CEO from the outset, following on from time spent as a microprocessor designer at Advanced Micro Devices (AMD). In its 2022 fiscal year, Nvidia’s revenue amounted to 26.9 billion U.S. dollars, with 15.7 billion U.S. dollars generated in Taiwan and China alone. Nvidia’s 2022 fiscal year also saw the firm spend 5.3 billion U.S. dollars on research and development as it looks to strengthen its product range.
Nvidia’s business segments
Nvidia reports its business as two segments: “Graphics” and “Compute & Networking”. The “Graphics” segment focuses on specialized markets, including the GeForce GPU series for gaming and PCs, virtual GPU (vGPU) software for cloud-based visual and virtual computing, as well as automotive platforms for infotainment systems. The “Compute & Networking” segment includes products developed for artificial intelligence (AI) and machine learning activities within cloud, edge, and data center environments, as well as processors with autonomous vehicles and robotics applications.
Nvidia’s specialized markets
In the 2022 fiscal year, Nvidia’s revenue from gaming amounted to 12.5 billion U.S. dollars, while revenue from data centers amounted to 10.6 billion U.S. dollars. Nvidia’s 2022 fiscal year saw data center revenues climb, a surge that has seen it approach the size of its gaming business.
Nvidia's failed takeover of Arm
To support Nvidia’s growth across these key markets and more, the firm had previously announced that it had reached an agreement with SoftBank Group Corp to purchase Arm Limited in a transaction worth 40 billion U.S. dollars. However, in February 2022, the deal, which stood to be the largest semiconductor industry acquisition in history, collapsed, with Nvidia citing significant regulatory challenges as a major stumbling block. SoftBank will receive 1.25 billion U.S. dollars from Nvidia for failing to go through with the transaction, with the company seeking an initial public offering of Arm before the end of its next fiscal year in March 2023.
Nvidia’s competitors in the GPU market include suppliers of both discrete and integrated graphics, with notable examples including AMD and Intel. Nvidia also faces competition from firms designing other accelerated computing solutions, particularly the growing number of startups specializing in AI chips, as well as larger tech firms like Alphabet, the parent company of Google, who are looking to innovate in the AI chips space through the development of their Tensor Processing Unit (TPU). Other competitors include system-on-chips (SoCs) suppliers, products found in mobile devices and autonomous vehicles, with Qualcomm, Broadcom, and Tesla as notable examples.
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Research expert covering the global hardware industry