NVIDIA's AI server shipments are expected to grow rapidly, as analyst Ming-Chi Kuo reveals a 150% YoY surge amid huge demand from the industry.

NVIDIA Plans on Capitalizing The Growing AI Markets By Expanding Its Pool of Suppliers, Shengyi Technology Joins The List

NVIDIA's role in the AI markets is something no one can ignore since Team Green's portfolio of AI-focused products has penetrated well into the industry with a disruptive market share well above 90% according to various reports.

NVIDIA has been reporting "shocking" revenue figures from its data center segment for the past two quarters, and this doesn't look to stop anytime soon, since 2024 is expected to be another year of dominance for the company in the AI market. NVIDIA plans on generating a whopping $300 billion from the AI segment in the coming years, hence its plans for rapid expansion of facilities and supply chain will still exist moving forward.

The Tianfeng Securities analyst Ming-Chi Kuo discloses that NVIDIA plans on accelerating the volumes of AI shipments next year, for which it has reportedly included Shengyi Technology as a potential supplier for ultra-low loss Copper-Clad Laminate (CCL). Shengyi Technology is a Chinese-based firm that specializes in "electronic circuit base materials", and the company has recently gained certification for its CCL process, which is expected to be integrated into NVIDIA's AI server motherboards starting as early as Q2 2024.

Nvidia AI server shipments are expected to grow 150% YoY or more in 2024, and ultra-low loss CCL is currently in tight supply.In addition to existing high-end general servers and PCs/laptops, future AI PCs will also need to upgrade their CCL to ultra-low consumption.The CCL usage of AI servers is about 8 times that of general servers.Nvidia AI servers are expected to further increase CCL usage after they are upgraded to the B100 solution in 2H24.

生益科技為Nvidia AI伺服器的2024年新贏家與AI PC領先受益者 / Shengyi to be the 2024 new winner of Nvidia AI server and the leading beneficiary of AIPCshttps://t.co/P9iOUDlBwy

— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) December 13, 2023

For a quick recap, CCL serves as the substrate for PCBs, providing a stable and conductive surface for the intricate network of circuits that make up electronic devices, and in this case motherboards. Currently, NVIDIA has been using EMC’s EM892K and Doosan’s DS-7409D as its primary CCLs, however, the company does plan on switching to Shengyi Technology mainly to cater to the growing industry demand, as well as next-gen developments, since it is reported that NVIDIA's servers are expected to utilize higher CCLs once they are equipped with the upcoming "Blackwell" B100 AI GPUs.

NVIDIA hss Blackwell B100 and faster Hopper H200 AI chips planned for launch in 2024. (Image Source: NVIDIA)

NVIDIA's decision to include Shengyi Technology in the list of its suppliers could prove to be quite beneficial for the Chinese firm, since not only is the demand for CCL at its peak in current times, but companies like EMC and Doosan have shown high gross margin and stock performance through the supply of CCL to the AI industry. Ming-Chi Kuo says that by 2024, EMC, Doosan, and Shengyi could have a supply market share of 60–65%, 20-25%, and 10-15%, respectively, depending upon how the markets turn out for the firms.

Shengyi Technology could also seize the opportunity of being NVIDIA's partner through advertising its services to the likes of Intel and AMD as well since CCL is going to play a vital part in terms of the industry's progression toward AI PCs since the ultra-low loss process is much more power and cost-efficient. Shengyi's revenue in the upcoming quarters is expected to blow up, given that the company plays its cards on the deck at the right time.