Generative AI drives silicon industry revenues and market entry

Nvidia has reported revenues for the third quarter of more than $18 billion, up around 200% from a year ago and up 34% on the previous quarter. Driven by strong demand for its processing units, which are needed to support generative AI solutions in the cloud, Nvidia’s revenues have tripled in the last year. Meanwhile, Microsoft has announced its entry into the AI computing market with the launch of two new processors to be deployed in its data centres from 2024.

Processing and computing units are needed for large generative AI models and have experienced strong growth over the last year, as Nvidia’s results show. Microsoft’s announcement to develop its own chips for its cloud services follows renewed efforts by AMD and Intel to compete with Nvidia in this market. AMD stock market values have soared by more than 90% this year as it shifts its focus to the AI market. Such developments point to the increasingly important role of silicon technologies in the digital transformation of the enterprise sector.