AI chip showdown
AI chip wars: Nvidia vs the world
Nvidia faces fierce competition from industry giants and startups alike. Learn how the Rubin Superchip is its secret weapon in the AI chip wars.
Nvidia’s market stronghold
The era of artificial intelligence (AI) supremacy is defined by raw compute power, software ecosystems and manufacturing scale. Nvidia currently claims about 80% of the AI training market and up to 95% of inference workloads.
Yet Intel, Advanced Micro Devices (AMD), hyperscale cloud providers, and innovative startups are chipping away at Nvidia’s dominance..
A crowded battlefield: rivals apply pressure
Nvidia's dominance faces challenges from four primary fronts:
- Established chipmakers sharpen their AI focus
- Cloud giants embrace custom AI silicon
- Startups disrupt with novel architectures
- Edge computing transforms AI deployment
| Competitor | Key players | Competitive edge |
|---|---|---|
| Established chipmakers | Intel (Gaudi 3) AMD (Instinct MI300X) |
Cost-effective alternatives, edge AI focus, software ecosystem development |
| Tech giants | Google (TPU, Trillium) Amazon (Inferentia) Microsoft (Maia, Cobalt) Meta, Apple |
Reducing Nvidia dependency, tailored AI chips for own services and devices |
| Startups | Graphcore, Cerebras, Groq, SambaNova, D-Matrix | Innovative architectures, venture-backed disruption potential |
| Market trends | Apple, Qualcomm, OpenAI Triton | Edge AI processing, software alternatives to CUDA |
Rubin: a quantum leap in performance
Nvidia's response to these challenges is the Rubin architecture, named after astronomer Vera Rubin. This groundbreaking platform combines a next-generation graphics processing unit (GPU) built on Taiwan Semiconductor Manufacturing Company (TSMC)'s 3 nanometre (nm) process with Nvidia's first custom central processing unit (CPU), Vera, creating an integrated 'superchip.'
| Chip model | Peak performance (petaflops) | Power draw (watts) | Petaflops per watt |
|---|---|---|---|
| Nvidia H100 | 4 (FP8 with sparsity) | 700 | 0.0057 |
| Nvidia Blackwell | 20 (FP4) | 900 | 0.0222 |
| Intel Gaudi 3 | 1.8 (BF16/FP8) | 600 | 0.0030 |
| AMD MI350 | 2.6 (estimated, FP8) | 600 | 0.0043 |
Nvidia Blackwell leads in energy efficiency, delivering roughly four times the petaflops per watt of the H100.
Supply-chain & geopolitical context
TSMC’s 3 nm capacity is nearly booked through 2026. Nvidia holds a large share of those wafers for Blackwell and Rubin, with AMD, Intel and Apple also securing booked volumes. Rising wafer costs (up 3 to 6% for 3 nm) and Taiwan-centric risks add execution challenges.
Nvidia’s volume reservations grant scale advantage but expose it to geopolitical tensions in semiconductor supply.
Words from the top
“Custom silicon and open software ecosystems are the foundation of AI’s future. By tightly integrating hardware and software we unlock unprecedented performance and efficiency that power the world’s most ambitious AI workloads.”
- Jensen Huang, Nvidia CEO
“Energy efficiency is not just about the chip; it’s about the entire system - architecture, packaging, software and data centre infrastructure working in harmony.”
- Mark Papermaster, AMD CTO
Nvidia's reign continues
In a fiercely competitive landscape, Nvidia's unrelenting innovation in H100, Blackwell, and Rubin architectures, combined with its robust ecosystem, solidifies its position as the leader in AI chips. While rivals like Intel and AMD continue to make strides, and emerging threats from startups and open-source initiatives keep Nvidia on its toes, the company's supercharged roadmap and ecosystem advantages set a high bar for competitors to overcome.
As the AI revolution unfolds, Nvidia appears well-positioned to maintain its reign in the AI chip market for the foreseeable future.
Important to know
IGA may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Ready to open an IG account?
Start your trading journey now
Contact
New clients
+65 6390 5133
accountopening@ig.com.sg
Existing clients
+65 6390 5118
helpdesk@ig.com.sg
Lines open 24 hours
Monday - Friday
Start a Whatsapp chat
Connect with us
Disclaimers:
- All forms of investments carry risks, including the potential loss of all or part of your principal amount invested. The value of an investment product may rise or fall, and may also become valueless. Past performance is not indicative of future results. Please ensure that you fully understand, and are aware of, the risks and costs involved.
- Trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits. Refer to the Risk Disclosure Statement and Risk Fact sheet.
- IG Asia Pte Ltd (Co. Reg. No. 200510021K)("IG") is regulated by the Monetary Authority of Singapore and holds a capital markets services licence.
- IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
- The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
- This advertisement has not been reviewed by the Monetary Authority of Singapore.
