With the acquisition of Arm, NVIDIA is looking to further expand its foothold in the PC and Data Center markets. As per figures presented by the company CEO, Jensen Huang, by 2023, NVIDIA will have a TAM of $250 billion, with the PC and mobile segments featuring the bulk of it at $95 billion.
Interestingly, NVIDIA mentions game consoles and smartphones in this segment as well. The last SoC from Team Green to be featured in the mobile space was the Tegra K1 and to a lesser extent the X1 which also powers the Nintendo Switch. However, both these chips are quite old, from the Maxwell era (2015) and based on TSMC’s 20nm/16nm nodes. This can only mean smartphones based on the Arm core architecture, and game consoles featuring both the Arm and GeForce IP.
The Data Center Market at $80 billion includes the Tesla accelerators and the Mellanox Networking Hardware as well as routers, switches, and servers (Arm based?). Finally, the Auto, Edge, and IoT segment comes in third with a total TAM of $75 billion by 2023. These include self-driving cars, robotics, Edge AI, wearables, etc. NVIDIA already has a foothold in these businesses.
To recap, NVIDIA is basically looking to penetrate the smartphone and gaming console market by licensing the Arm cortex cores and GeForce graphics. The second aspect is the server space. While the x86 chips still rule by a vast majority, we’ve started to see a fair number of RISC and RISC-V based designs from Ampere, Fujitsu, Amazon and some new players in this market. It’s not too unlikely that some of them might establish a stronghold here.
