By Kris Tuttle
Just as we published a research note highlighting some key takeaways from the recent Gilder Telecosm, we see the news that Intel (INTC) has suspended their immediate plans to enter the discrete GPU market. From the day we published our Nvidia (NVDA) note on January 29th, “Transition is Opportunity for Nvidia”, there has been a measurable increase in the rivalry between Intel and Nvidia over the increasingly-important GPU market. Since we have been highlighting Nvidia as the leading company, we’re pleased to see the news, but it’s also just a blip on what is becoming a monster technology growth and investment area.
In fact, our note highlights the fact that the RealVR and Cloud Computing themes are already converging. Taken together, this represents probably more than 100% of technology market growth in the next decade (although Digital Power and Biological IT will help too). Inside this new mega-theme, we include all forms of consumer and enterprise cloud computing and the mobile Internet.
Intel still dominates the integrated graphics chipset market so the news is more interesting for AMD and Nvidia. AMD now is unique in offering both mainstream x86-based CPU options and their own quite powerful GPU chips as well. Nvidia leads in the mobile and embedded space by a wide margin and has been racking up design wins with Tegra and the ION platform. Both AMD and NVDA are working with partners to bring GPU computing into the cloud in a serious way. We are seeing early applications of this technology already.
Although our RealVR Cloud observation steals the show in our Gilder Telecosm update, there are other important implications including: much better prospects for investments in alternative energy, particularly Digital Power (DPW) (now that the unrealistic expectations have been burned off), and more disruption in store for the very large and stodgy education market.
Disclosure: At the time of this writing Research 2.0 holds shares of NVDA in their model portfolio.