Comment by jandrese
18 hours ago
One word: Volume.
You can make a nice profit off of the enterprise space, but the big winners are the guys who put the work into servicing the consumer market.
18 hours ago
One word: Volume.
You can make a nice profit off of the enterprise space, but the big winners are the guys who put the work into servicing the consumer market.
Once you remove laptops from the picture, the consumer market is small in dollars compared to enterprise and has been for awhile. This didn't used to be the case, but here we are.
Best estimates from last year are on the order of 50 million discrete consumer GPUs vs 7-10 million datacenter/enterprise GPUs. Sounds like the PC market is huge! but with average sales costs of well under 1k USD (a lot of the PC cards are budget variety, included with prebuilt computers, etc). it's only a $30-40b business. Those datacenter GPUs are averaging $50k each before the supply issues with HBM started to inflate everything greatly. But using that as a benchmark, that enterprise business looks like several hundred billions.
NVIDIA's latest filing reported $162b in revenue for datacenter compute in the last FY, so we know it's at least that large. Now add AMD, Intel, and everything going on in China that we don't have great numbers for. We can very conservatively say that the enterprise GPU market is currently >5x larger than consumer, in dollars, and it may be quite a bit larger than that.
This year is far from typical however. The AI bubble is throwing all of the numbers out of whack.
I agree, which is why I used numbers from 2025 in my assessment, it's too soon to know if inflated 2026 numbers are a new normal or a one time bump. I think calling enterprise 5x larger than consumer based on 2024-2025 numbers is defensible, saying that enterprise was 10-15x consumer market just based on 2026 is yet unproven.
Thats why nvidia is the most valuable company in the world after effectively axing their consumer division?