AMD and Nvidia's R&D budgets were quite similar ten years ago, but in recent years, Nvidia has been leaving its GPU rival behind in investment in

Intel spends more on R&D than Nvidia and AMD combined, yet continues to lag in market cap — Nvidia spends almost 2X more than AMD

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2024-10-16 12:30:02

AMD and Nvidia's R&D budgets were quite similar ten years ago, but in recent years, Nvidia has been leaving its GPU rival behind in investment in this critical activity. According to the latest figures, Nvidia's spending on new technologies is about two times higher than that of AMD, according to Tech Fund. But while Nvidia's R&D spending easily eclipses AMD's, it is still way behind Intel and Qualcomm, and they all pale behind Apple's R&D expenditure.

Regarding R&D spending, Nvidia invests in data center GPUs for AI and HPC (now its bread-and-butter business), client PC GPUs, networking gear, and DPUs that are used to support its data center products. Given how fast Nvidia's H100/H200 and B100/B200 datacenter GPUs are selling, the company can afford to fire up its research and development department on all cylinders to develop new GPUs.

Also, now that the company has set the stage with a yearly cadence of AI product releases, it is reasonable to expect it to increase its R&D spending. Indeed, it skyrocketed this year: as of July 28, Nvidia spent $3.090 billion on R&D this fiscal year, up a billion from last year.