November Instance Insights_ NVDA Sees Strength, AMD EPYC Genoa Boosts CPU Share

Summary of Key Points from the Conference Call Industry Overview: Semiconductors Core Insights - AI Instances Growth: AI instances grew by +0.9% month-over-month (M/M) in November, a decrease from +3.3% in October [1][2] - NVIDIA (NVDA) Dominance: NVDA captured 97.7% of new accelerator instances in November, increasing its total market share by +30 basis points (bps) to 85.0% [1][2] - AMD's Performance: AMD gained +70 bps in CPU market share, driven by the EPYC Genoa processor, while Intel (INTC) saw a decline of -70 bps [1][3] Market Share Dynamics - CPU Instances: Total processor-only instances increased by +1.5% M/M, with AMD holding 62.9% of CPU instances in November, up from 8.7% in October [3][31] - Intel's Decline: INTC's share of new CPU instances fell to 31.6% in November from 41.4% in October, with total INTC share declining -70 bps to 65.7% [3][31] - Microsoft (MSFT) VM Instances: MSFT maintained a leading position in cloud service providers (CSPs) with a 35.3% share of VM instances, up from 34.6% in October [4][31] Performance of Key Players - AMD's EPYC Genoa: The EPYC Genoa processor accounted for almost all incremental instances in November, increasing its share to 7.1% from 6.1% [3][31] - AWS's Graviton Instances: AWS's Graviton instances grew by +1.6% M/M, maintaining a flat share [31] - CSP Market Shifts: ORCL, BABA, and AMZN saw increases in their instance shares, while GOOG and Tencent experienced declines [47] Additional Insights - Accelerator Mix: The mix of dedicated accelerators has remained flat M/M, with GPUs making up 89.0% of total accelerator instances, the highest recorded [26][31] - Market Trends: The overall growth in instances deployed by CSPs was +1.4% M/M, driven by processor-only instances growing +1.5% M/M [17][31] Conclusion The semiconductor industry is witnessing significant shifts in market share, particularly with NVDA's strong performance in accelerators and AMD's gains in CPU instances. The competitive landscape is evolving, with key players like MSFT, AWS, and ORCL also making notable strides in their respective markets.