Recently, a change has been observed in technology hardware. Shipments of hard drives are declining and the space is becoming increasingly focused on the enterprise market.
At the same time, leading graphics card manufacturers are also turning to enterprise applications with advances in artificial intelligence and deep learning. This shift could redefine consumer access to these technologies in the coming years.
The hard drive industry has experienced a noticeable decline over the last five quarters.
Despite the introduction of innovative hard drive technologies such as SMR and HAMR, solid state drives (SSD) are taking over market share, signaling a shift in preference among consumers and businesses.
A similar transformation is taking place in the graphics processing unit (GPU) industry.
Companies like Nvidia , a pioneer in producing consumer GPUs, are signaling a strategic realization, with CEO Jensen Huang informing employees that the company will focus on deep learning rather than traditional graphics.
Nvidia’s success with AI-related GPU applications shows that there is a lucrative direction for its business model.
Both Nvidia and AMD have long been major players in producing consumer-grade GPUs.
However, recent sales numbers are disappointing and hint that consumer GPUs like Nvidia’s GeForce series may have limited iterations before the company moves fully into the enterprise space.
The profitability of enterprise-class GPUs, particularly in AI efforts, dwarfing the consumer market, is pushing companies like Nvidia to serve enterprise demands.
Future releases of Nvidia’s RTX series could mark the end of an era for consumer GPUs, and with the company announcing plans for annual enterprise GPU launches, consumers could be positioned as secondary beneficiaries of these technological advancements.