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0 pointsmakeitdouble11mo ago0 comments

But then they're not boosting NVidia's competitors either, so wouldn't NVidia stay in the top position in their market ?

The article seems focused more on stock price and where to bet, than the market for GPUs or generic hardware vendors.

0 comments

dwattttt11mo ago

> But then they're not boosting NVidia's competitors either, so wouldn't NVidia stay in the top position in their market ?

Nope; if hypothetically 100% left NVidia, whether to their own hardware or to not use GPUs at all, it'd be easy to say NVidia would be last in the market

makeitdoubleOP11mo ago

Are you arguing that the major cloud providers getting away from consumer GPUs would put AMD or Intel ahead of Nvidia in the GPU market ? How does that happen when the next biggest market (gaming) is still fully Nvidia's turf?

dwattttt11mo ago

> Are you arguing that the major cloud providers getting away from consumer GPUs would put AMD or Intel ahead of Nvidia in the GPU market ?

Just the hypothetical "if X% of your customers leave, but don't go to competitors, won't you keep your relative market position"

voidspark11mo ago

He's talking about datacenter GPUs which are not really GPUs.

Gaming is not entirely Nvidia's turf either. AMD has 75% of the console market (Xbox and Playstation) and 30% of the PC market.

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mycall11mo ago

By switching to their own hardware, they become NVidia's competitors.

makeitdoubleOP11mo ago

That's kind of arguing that people cooking at home are restaurants' competitors.

There's a kernel of truth in it, but if I was McDonalds I'd care a lot more about what KFC is doing than the market trends of cast iron pans.

johnnyanmac11mo ago

I'd say so, yes. If I'm McDonald's and me and kfc are down, but Ralph's is up, I'd suspect a worrying trend about my industry.

It's kind of like how people may make fun of YouTube seeing TikTok as a competitor. But you dig deeper and realize why they decided to get into short for content.

voidspark11mo ago

Bad analogy

90% of Nvidia's revenue is from datacenters.

If the datacenters stop buying Nvidia's products, and use their own hardware instead, then Nvidia loses 90% of its revenue.

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brazzy11mo ago

No, you wouldn't, not if that market trend causes your revenue to plummet. Changes in the size of the market matter just as much as market share.

prng202111mo ago

The 3, multi-trillion dollar hyperscalers using their own GPUs are individuals cooking at home? And Nvidia is the “restaurants”?

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dwattttt11mo ago

> But then they're not boosting NVidia's competitors either, so wouldn't NVidia stay in the top position in their market ?

Nope; if hypothetically 100% left NVidia, whether to their own hardware or to not use GPUs at all, it'd be easy to say NVidia would be last in the market

makeitdoubleOP11mo ago

dwattttt11mo ago

> Are you arguing that the major cloud providers getting away from consumer GPUs would put AMD or Intel ahead of Nvidia in the GPU market ?

Just the hypothetical "if X% of your customers leave, but don't go to competitors, won't you keep your relative market position"

voidspark11mo ago

He's talking about datacenter GPUs which are not really GPUs.

Gaming is not entirely Nvidia's turf either. AMD has 75% of the console market (Xbox and Playstation) and 30% of the PC market.

1 more reply

mycall11mo ago

By switching to their own hardware, they become NVidia's competitors.

makeitdoubleOP11mo ago

That's kind of arguing that people cooking at home are restaurants' competitors.

There's a kernel of truth in it, but if I was McDonalds I'd care a lot more about what KFC is doing than the market trends of cast iron pans.

johnnyanmac11mo ago

I'd say so, yes. If I'm McDonald's and me and kfc are down, but Ralph's is up, I'd suspect a worrying trend about my industry.

It's kind of like how people may make fun of YouTube seeing TikTok as a competitor. But you dig deeper and realize why they decided to get into short for content.

voidspark11mo ago

Bad analogy

90% of Nvidia's revenue is from datacenters.

If the datacenters stop buying Nvidia's products, and use their own hardware instead, then Nvidia loses 90% of its revenue.

1 more reply

brazzy11mo ago

No, you wouldn't, not if that market trend causes your revenue to plummet. Changes in the size of the market matter just as much as market share.

prng202111mo ago

The 3, multi-trillion dollar hyperscalers using their own GPUs are individuals cooking at home? And Nvidia is the “restaurants”?

1 more reply

j / k navigate · click thread line to collapse