NVIDIA (NVDA) is holding leadership in the $85 billion or more accelerator market, analysts at Bank of America said in a note Wednesday.
The firm believes Nvidia (NASDAQ:NVDA), which has seen its share price surge over the last 12 months, is leading the charge in data center, while they also believe the gaming upcycle is still strong.
"GPU silicon units in Q4 reached >900k (up >100% YoY), with NVDA commanding nearly 95% market share (with share >97% at a system level given higher ASPs)," wrote analysts at BofA.
"Hopper (H100/HGX platform) products vast majority of overall NVDA data center revenue, with A100 mix continuing to decline (though still meaningful) and L40S SKUs ramping (though still small)," they added. "Given current Hopper mix, Mercury believes NVDA GPU silicon sales (~850k) increased >20% QoQ, driven by continued H100 (and L40S) units."
The firm also noted that AMD's (NASDAQ:AMD) data center GPU revenue surged to ~$400 million in Q4 as shipments ramped up to support the new El Capitan Supercomputer.
BofA reiterated its Buy rating on both NVDA and AMD, as they believe there is "significant growth ahead" for the $85 billion to $90 billion accelerator market.