Key Points
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Nvidia has grown its data center revenue over 10-fold in three years due to increased AI spending.
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Over the next three years, more competition in the AI accelerator space is expected.
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TSMC is projected to triple its AI revenue from $26 billion by 2027.
Nvidia’s data center revenue surged more than 10-fold in three years, largely fueled by demand for graphics processing units (GPUs) amid a tech race to enhance AI capabilities. In 2023, the four largest tech companies plan to spend over $320 billion on capital expenditures, primarily directed towards data centers. Nvidia expects a 50% revenue growth in its upcoming quarter as it leads in the AI chip market, despite rising competition from companies like Advanced Micro Devices (AMD) and custom chip designs from major firms like Microsoft and Google.
AMD is introducing MI400 chips in 2026 that could challenge Nvidia’s market dominance, backed by commitments from major players including OpenAI and Meta. Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) is set to increase its AI revenue significantly, projecting to more than triple from $26 billion by 2027, alongside the introduction of advanced manufacturing processes. Current estimates suggest that TSMC’s AI-related revenue will grow substantially, driven by high demand for more advanced chips.
