TrendForce: Trends and challenges in the high-end AI server market in 2024

Date: 27/02/2024
TrendForce in its latest analysis on high-end AI server market for 2024 see significant influence wielded by North America's cloud service providers. AI chip makers NVIDIA, AMD, and other top-tier ASIC chip manufacturers continue to have strong presence in this market, with NVIDIA's GPU-based servers leading the charge.

Dominance of Cloud Service Powerhouses: Microsoft, Google, AWS, and Meta are anticipated to collectively command over 60% of global demand for high-end AI servers. NVIDIA GPU-based servers are expected to dominate, despite facing stiff competition.

Challenges Facing NVIDIA: Despite its strong foothold, NVIDIA encounters hurdles, including US restrictions and rising competition. Challenges include the US export ban, proprietary ASIC development among US cloud giants, and competitive pressure from AMD.

Strategic Shifts by NVIDIA: NVIDIA is diversifying its product portfolio by transitioning from the A100 series to the advanced H100 series. It plans to introduce the H200 series with superior specifications to cater to evolving market needs.

Future Product Offerings: NVIDIA plans to launch its next-gen B100 products, surpassing the H series in efficiency. These products will feature higher HBM memory capacity to meet the demands of HPC and AI training. Additionally, NVIDIA is set to introduce the L40S and L4 models targeting enterprise and mid-range segments.

Addressing Supply Shortages: NVIDIA is actively increasing CoWoS and HBM production capacities to alleviate GPU shortages. This proactive approach aims to reduce delivery times and mitigate supply chain bottlenecks.

The high-end AI server market is witnessing dynamic shifts driven by technological advancements and evolving market dynamics. Despite challenges, NVIDIA remains a frontrunner, leveraging strategic shifts and product diversification to maintain its leadership position. As cloud service giants drive demand, manufacturers must adapt swiftly to capitalize on emerging opportunities and navigate the complex landscape of the AI server market.

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News Source: TrendForce