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Nvidia Competitors and Alternatives – Here’s Who Competes With The GPU Giant!

Brent Davis - May 28, 2021

Nvidia is a fabless semiconductor company that makes graphics processing units (GPUs) for gamers and professional markets. 

The company also manufactures system on a chip units (SoCs) for the mobile computing industry and automotive markets.

In this area of GPUs and semiconductors, it seems Nvidia is the king.

The company is not only a hot name for gamers, but it is also a favorite stock for most traders. 

Nvidia keeps growing stronger, as it consistently reels in new clients like Sony, Toyota, and Tesla. 

Nvidia Competitors

In this article, we take a look at some of Nvidia’s competitors and alternatives. They are: 

  • Advanced Micro Devices
  • Intel
  • Broadcom

Nvidia Competitors: Advanced Micro Devices

Nvidia Competitors

Also known as AMD, Advanced Micro Devices is a public company that was founded in Santa Clara, California, in 1969. 

The Nvidia vs. AMD battle rages on, and it’s never been fiercer thanks to continuous improvements and growth from both players. 

Any serious gamer or esports enthusiast understands well the longstanding battle between AMD and Nvidia. 

While Nvidia might be the champion when it comes to the best graphics processing units (GPUs), the two companies have maintained healthy competition for quite a while. 

In the past three years, it seems like AMD has managed to outperform Nvidia in some areas.

The reason is that AMD has shifted its focus to relatively cheaper GPUs. 

The company also managed to partner with Hewlett Packard Enterprises to tackle the El Capitan Project.

This project is aimed at creating the world’s fastest supercomputer. 

Advanced Micro Devices has been improving continuously in the past few years. 

The figures from the last quarter of 2020 indicated a 41% boost in the gross margin from 2019.

This was the highest figure AMD had achieved in the previous eight years.

This could have been because of increased entertainment sales and the introduction of new gaming hardware. 

In the past five years, AMD’s stocks have grown about 3,000%. This is some serious growth, and the pattern is expected to remain. 

The release of the Playstation and Xbox consoles is also having positive effects for the company since it produces the CPU software for these devices.

Nvidia Competitors: Intel

When 2019 ended, Intel had a 63% market share of PC GPUs.

At that same time, AMD had about 19%, while Nvidia held 18%. Currently, Intel’s revenue is expected to keep increasing. 

Since 2017, AMD has been gaining ground on Intel when it comes to the CPU market.

That might have been a bit alarming at first for Intel investors, but Intel is still a giant in the industry.

In 2020 alone, intel produced 86% of all laptop CPUs. This might be a short-lived victory, however. 

Apple recently announced that they would start producing their own chip, a move which will break the 14-year partnership between the two giants. 

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While it’s not yet clear how this will impact Intel, the effects won’t certainly be beneficial. 

In other markets, Intel can still present serious competition to Nvidia. Recently, the company spent about $900 million on ‘Moovit.’ 

This is an Israeli mobility as a service (MaaS) company that specializes in AI solutions.

This adds to the list of companies that are already owned by intel. 

Also among Intel’s investments is ‘Mobileye’ and a number of other computer vision companies. 

Intel also owns a driverless platform. These investments give Intel a bit of an edge when it comes to competing with Nvidia. 

The company is progressing not only in manufacturing GPUs and CPUs but has also become a potential powerhouse in the driverless car markets.

Nvidia Competitors: Broadcom

Nvidia Competitors

 

This is a semiconductor and infrastructure software company that is in serious competition with Nvidia.

Over the past ten years, Broadcom has had a streak of increasing dividend payouts to its investors

Though it might not match the level of competition that AMD presents to Nvidia, Broadcom still manages to rack in billions in net income. 

In 2019, the company’s net income was recorded at $2.7 Billion, a figure that’s way higher than AMD’s 341 million. 

Even with those figures, Nvidia is still way ahead of Broadcom. In the same year, the company made around $11 billion in net income. 

However, we should also consider that Nvidia is a lot more diversified than Broadcom.

That’s one of the reasons why the giant brings in more revenue overall and manages to stay ahead. 

Broadcom also enjoys a healthy level of diversity within the data sector.

The company provides services in the mainframe, industrial, and enterprise markets. 

They also offer wireless, broadband, and networking solutions.

Broadcom is excelling in these areas, so much that the company has even attempted to buy Qualcomm. 

This move was only prevented because of national security concerns.

When it comes to stock performance, Nvidia managed to return 147.9% over the past three years, whereas AVAGO (Broadcom) gained 125.9%. 

This makes Nvidia the clear winner, but others will argue that Broadcomm’s AVAGO is a better stock.

Currently, AVAGO’s trailing-12-month revenue is 1.6 times NVDA’s. 

Apart from that, AVGO is way more profitable, with a gross profit margin of 72.7% compared to NVDA’s 63.7%.

What Is Nvidia’s Advantage?

Nvidia is currently one of the most impressive tech companies. 

The company emerged as the clear winner among its competitors not only because of its investments in graphics processing units.

It is also targeting some of the most lucrative’ application areas like deep learning. 

In earlier years, GPUs were basically used for generating high-quality graphics in video games. However, Nvidia did not only focus on this. 

Instead, the company identified that the best move would be to improve processing speed.

Therefore, to win the battle with its competitors, Nvidia made rapid advancements in graphics technologies. 

The company started releasing a new chip every six months while its competitors would stick to the industry average of 18 months. 

To achieve this, Nvidia invested heavily in creating several development teams and new facilities in a bid to lower the failure rate in chip manufacturing.

Unlike its competitors, the company took a holistic approach when it comes to investments. 

Lastly, Nvidia managed to create an employee-friendly environment by offering flexible working hours and generous compensation packages. 

All these factors allowed Nvidia to grow and become more successful than its competitors. 

Nvidia Biggest Competitors: Final Thoughts

The market for products manufactured by Nvidia competitors is intensely competitive.

It is a market characterized by rapid technological change and evolving industry standards. 

With increasing competition, the average selling prices keep declining. 

Currently, Nvidia is performing better than its competitors; they have a better breadth of product offerings and better access to customers and distribution channels.

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Brent Davis has been writing about the financial markets for 10 years and worked in research for the last five years at a Fortune 500 company. Brent's investing strategy is to buy high-quality companies and then let compounding do its thing.