Bank of America has reiterated its Buy rating on both $NVDA and $AMD, emphasizing the potential for significant growth in the $85 billion to $90 billion accelerator market, where NVIDIA maintains a leadership position.
BofA analysts assert that Nvidia $NVDA is spearheading advancements in the data center segment, and they remain optimistic about the strength of the gaming upcycle.
In Q4, GPU silicon units surpassed 900k, exhibiting a notable YoY increase of over 100%. NVDA’s market share stands at nearly 95%, reaching over 97% at a system level, attributed to higher ASPs.
BofA highlighted the pivotal role of Hopper (H100/HGX platform) products in NVDA’s overall data center revenue. While A100 mix is on a decline, it still holds significance, and L40S SKUs are gradually gaining momentum, albeit on a smaller scale.
According to Mercury analysts at BofA, based on the current Hopper mix, NVDA’s GPU silicon sales experienced a QoQ surge of more than 20%, driven by sustained H100 (and L40S) unit sales.
The firm also noted a substantial increase in $AMD’s data center GPU revenue, reaching approximately $400 million in Q4. This surge was attributed to escalated shipments supporting the new El Capitan Supercomputer.
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