Intel CEO Pat Gelsinger has made a significant prediction about the AI chip market, challenging the current narrative of Nvidia’s dominance. Speaking at the World Economic Forum, Gelsinger suggested that by 2025, the AI chip market will see much more competition, with Nvidia’s market share potentially dropping from its current 80% to about 25%. He emphasized that the market is underestimating the speed at which competitors, including Intel, AMD, and various startups, will catch up to Nvidia. Gelsinger pointed to historical patterns in the semiconductor industry, noting that no single company has maintained such dominant market share in any category for an extended period. The Intel CEO highlighted his company’s upcoming AI chip offerings, including the Gaudi3, which is expected to compete directly with Nvidia’s products. This prediction comes amid Nvidia’s extraordinary success in 2023, where its market value surged to over $1.2 trillion, driven by the AI boom. However, Gelsinger’s comments reflect a broader industry expectation that the AI chip market will become more competitive as other companies develop their capabilities and bring new products to market. The prediction also aligns with Intel’s strategic push into the AI chip sector and its efforts to regain leadership in the semiconductor industry. This perspective offers a contrasting view to the current market sentiment that heavily favors Nvidia’s continued dominance in AI computing.
Source: https://www.businessinsider.com/intel-pat-gelsinger-deepseek-market-wrong-nvidia-2025-1