Nvidia is set to control 77% of the world’s supply of wafers destined for AI applications by 2025, according to a report from Morgan Stanley. The company will consume up to 535,000 300-mm wafers, a significant increase from its current share of 51%. Nvidia’s dominance in the AI wafer market is attributed to its massive demand and production ramp-up.
Industry heavyweights like AWS, Google, and AMD will see their shares decline. AWS will lose about 30% of its share, while Google will drop by 41%. AMD’s share will decrease from 9% to 3%, mainly due to the limited wafer allocations for its MI300, MI325, and MI355 GPUs.
Nvidia’s B200 GPU is expected to require 220,000 wafers, generating $5.84 billion in revenue. The company’s H100, H200, and B300 GPUs also contribute to its dominance in the market. These products use TSMC’s 4nm-class process technologies, which explains their high wafer demand.
The total AI market is projected to reach 688,000 wafers and is estimated to be worth $14.57 billion. However, this projection might be an underestimation, given TSMC’s strong performance in 2024. The company earned $64.93 billion from segments that include high-performance computing (HPC), with AI GPUs and data center CPUs accounting for the majority of HPC revenue.
Nvidia’s B200 GPU is expected to drive growth in the wafers consumed by AI processors, with an estimated 220,000 wafers required, generating $5.84 billion in revenue.
Source: https://www.tomshardware.com/tech-industry/artificial-intelligence/nvidia-to-consume-77-percent-of-wafers-used-for-ai-processors-in-2025-report