The increasing adoption of the artificial intelligent chips in the developing region have resulted to emergence of new market of the NVIDIA Corporation’s products. Moreover, growing demand for smart homes and cities, and emergence of the quantum computing have led to the increase in the size of the NVIDIA market. For instance, initiation of smart city in India, a developing country, will create a new market for NVIDIA. This is because tools and technologies, artificially intelligent which have the potential to transform and interconnect digital homes will be required. In United States of America (USA) and Canada, NVIDIA Corporation have experienced considerable growth in the market of tech start-ups in the recent years.
Research indicates that the recent developments experience in the industries such as media and advertising, healthcare, transportation and finance and others, created major growth for NVIDIA new market especially in developing economies like china, Mexico, japan, and Australia. The new wide market of the NVIDIA in Europe is in United Kingdom (UK), Germany, France, and Russia. The major market players include advanced micro device (AMD), Google, Inc., Intel Corporation, QUALCOMM and UC-Davis. various studies suggests that NVIDIA is dominating the high end pc gaming market in Europe, north and south America, Asia-pacific middle east and Africa. Market analysts as the market leaders due to their high quality hardware and software innovations that has played a significant in saving time and money of the developers. For the last one year, NVIDIA market size increased by 10 percent. In second and third quarter it gained 63.9 and 74.3 respectively. The big market share and potential have played a huge role in expansion of the size of the fair.
The sales and the revenue of NVIDIA Corporation is expected to decline. At the beginning of 2019, the gross margin appeared to stop expanding. This is due to slowdown of Chinese economy, which have significantly affected the consumer demand for GPU’s. Moreover, development of tensorFLOW processing unit (TPU) by Google have posed a major threat to the growth of NVIDIA. Ideally, the rise of competitive landscape can make the corporation to make a turn to the worse. This is because it affects productivity and capital formation which have severe impacts to the economy. In addition, inadequate investment in ICT, especially in developing countries, have reduced the innovation of the NVIDIA Corporation. This have great influence on the economic growth. The monetary policies and taxations of various countries forces the corporation to lower prices of its products hence results to reduction of the profit margins.
The decline of profit and the rise of competition was the behind the business strategy decision that was made any NVIDIA. To overcome competition, the corporation management decided to partner with Toyota motor corp to use AI for its autonomous vehicle. Moreover, the NVIDIA is dedicated in creating AI that would help in eliminate and minimise risk to humans in various industries. Recently, the NVIDIA decided to make unique and efficient systems that would help in solving computational and mathematical problems that are crucial in many companies. Shortage of skilled workforce is the major challenge facing NVIDIA in making AI chip.to overcome this, more people are being trained in various branches of this corporation to increase its efficiency in service delivery.
to support the decision, the data used was acquired from online surveys and from potential consumers of NVIDIA products. Also, some data was taken extracted from market analyst’s reports.
Brian, Sozz. Nvidia Is Still Blowing Away Technology Industry Rivals, 2018 https://www.thestreet.com/investing/nvidia-is-still-blowing-away-technology-industry-rivals-14664929
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