Piper Sandler analyst Brent Bracelin said the breadth of enterprise adoption of generative AI has surprised him again. Nearly half of enterprises (49%) last year were testing Generative Artificial Intelligence. Today, nearly half of enterprises (48%) are implementing GenAI driven by the most popular departmental use cases across support and operations.
Majority (>50%) still view Microsoft Corp (NASDAQ:MSFT) and OpenAI as the most strategic AI vendors, while interest in Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google Cloud Platform, Meta Platforms Inc (NASDAQ:META), and Oracle Corp (NYSE:ORCL) ticked up.
Analyst Harsh Kumar noted GPU accelerators could be an over $400 billion opportunity by 2027E with sustained double-digit CAGR growth. In the GPU space, Kumar noted Nvidia Corp (NASDAQ:NVDA) as the clear leader with over 70% of the total market with Advanced Micro Devices, Inc (NASDAQ:AMD) and Intel Corp (NASDAQ:INTC) competing for the rest of the market. In networking, Broadcom Inc (NASDAQ:AVGO) continues to be the clear leader relative to Marvell Technology, Inc (NASDAQ:MRVL) when it comes to enterprise adoption, as per Kumar.
Kumar noted that 58% of respondents who use Apple Inc (NASDAQ:AAPL) devices expect it to grow as a percentage of total devices (46% in December 2023, and 41% in July 2023), and 42% expect the proportion of Apple devices in their company will remain the same (42% in December 2023, 51% in July 2023).
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