NVIDIA AI Server Shipments Set for 150% Increase in 2024

NVIDIA's AI server shipments are likely to climb significantly, with analyst Ming-Chi Kuo revealing a 150% YoY increase despite high industry demand.

NVIDIA Expects To See A 150% year-on-year increase in AI Shipment in 2024

According to numerous reports, NVIDIA's involvement in the AI markets is something no one can ignore because Team Green's portfolio of AI-focused products has penetrated deep into the sector with a disruptive market share far above 90%, WCCFTech reported.

For the previous two quarters, NVIDIA has reported "shocking" revenue statistics from its data center division, and this does not appear to be changing anytime soon, as 2024 is predicted to be another year of dominance for the firm in the AI industry.

NVIDIA expects to generate $300 billion from the AI industry in the next few years; thus, its plans for fast facility and supply chain development will continue.

According to Tianfeng Securities analyst Ming-Chi Kuo, NVIDIA intends to increase the number of AI exports next year, and it has allegedly identified Shengyi Technology as a prospective supplier for ultra-low-loss copper-clad laminate (CCL).

Shengyi Technology is a Chinese business that specializes in "electronic circuit base materials" and has just received approval for their CCL method, which is scheduled to be integrated into NVIDIA's AI server motherboards as early as Q2 2024.

Nvidia AI server shipments are predicted to increase by 150% or more year on year in 2024, while ultra-low-loss CCL is now in short supply. Future AI PCs will need to enhance their CCL to ultra-low consumption in addition to existing high-end general servers and PCs/laptops.

AI servers have around 8 times the CCL use of regular servers. Nvidia AI servers are projected to use more CCL after being updated to the B100 solution in 2H24.

NVIDIA's Strategic Move Towards Shengyi Technology for CCL Supply

To summarize, CCL acts as the PCB substrate, providing a sturdy and conductive surface for the complicated network of circuits that comprise electronic devices, including motherboards. Currently, NVIDIA has been using EMC's EM892K and Doosan's DS-7409D as its primary CCLs; however, the company intends to switch to Shengyi Technology primarily to cater to growing industry demand, as well as next-gen developments, as NVIDIA's servers are expected to use higher CCLs once they are equipped with the upcoming "Blackwell" B100 AI GPUs.

NVIDIA's decision to include Shengyi Technology on its list of suppliers may prove advantageous for the Chinese firm, as not only is demand for CCL at an all-time high, but companies such as EMC and Doosan have demonstrated high gross margins and stock performance through the supply of CCL to the AI industry, as per Moomoo.com.

According to Ming-Chi Kuo, depending on how the markets play out for the businesses, EMC, Doosan, and Shengyi might have a supply market share of 60-65%, 20-25%, and 10-15%, respectively, by 2024.

Shengyi Technology may also seize the opportunity to be NVIDIA's partner by advertising its services to the likes of Intel and AMD, as CCL will play a critical role in the industry's progression toward AI PCs due to the ultra-low loss process being much more power and cost-efficient. Shengyi's revenue is likely to skyrocket in the next quarters, assuming the corporation plays its cards well.

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