– Nvidia and Amazon Web Services emerged from a happy accident with their core businesses
– Nvidia has experienced explosive revenue growth in recent quarters, mainly driven by its data center business
– Analysts expect Nvidia to continue scaling its revenue past $100 billion annually, with AI being a key driver for growth.
Nvidia and Amazon Web Services both experienced explosive revenue growth in recent quarters. Nvidia’s revenue grew from $7.1 billion to $22.1 billion in Q4 2024, largely driven by its data center business. AWS, on the other hand, has consistently been a major revenue driver for Amazon. Microsoft and Google have also entered the cloud market, creating competition for the Big Three cloud vendors.
The growth of both companies was fueled by the emergence of web apps, mobile, and AI workloads in the last decade. As enterprises began to see the value of moving workloads to the cloud, both Nvidia and AWS were in the right place at the right time to capitalize on this trend. Nvidia’s revenue growth is expected to continue, with analysts predicting $24 billion in revenue for Q1 FY25, a 234% growth from the previous year.
Looking ahead, AI is expected to be a key driver of growth for Nvidia, despite increasing competition from other chipmakers. IDC and Jon Peddie Research show that Nvidia currently dominates the chip and board level markets, but competitors like AMD are gaining ground. Some analysts predict that Nvidia’s dominance may begin to weaken in the coming years as companies explore alternatives to GPUs.
Despite its current success, some experts believe that Nvidia’s stronghold on the market may eventually be disrupted by emerging technologies or competitors. However, for now, Nvidia remains a revenue powerhouse with strong momentum, fueled by the growing demand for AI processing capabilities. It is clear that competition is increasing, and Nvidia will need to continue innovating to maintain its position in the market in the long run.