Citi says Nvidia will have a 90%+ market share in AI chips market

Nvidia (NASDAQ:) is poised to dominate the AI chips market in a way that Intel (NASDAQ:) previously dominated the servers market, Citi analysts wrote in a client note.

The analysts weighed in on the results of AI chips testing performed by MosaicML, an AI startup. The results showed that AMD’s (NASDAQ:) MI250 AI chip was 80% as fast as Nvidia’s previous generation A100 AI chip.

“We expect a similar advantage of NVDA’s H100 vs AMD’s MI300 and we continue to expect NVDA to have a substantial advantage in AI performance and share versus AMD going forward given superior speed and ecosystem,” they said in a client note.

“We expect NVDA to have at least 90% share of AI graphics going forward as the scenario is reminiscent of Intel vs AMD ten years ago when Intel had better performance and ecosystem and over 90% share.”