Comments made by supercomputer maker Cray suggest Intel's new "Knights Landing" Xeon Phi lineup is gaining traction. Cray CEO Peter Ungaro said his company has a "substantial amount of business" that relies on both Intel's Knight Landing Xeon Phi as well as NVIDIA's Tesla P100, and that orders for systems based on the former are exceeding orders for systems with the Tesla P100.
Motley Fool writer Ashraf Eassa claims this is bad news for NVIDIA going forward, as the green team will now be locked in a heated and fierce battle with Intel in the supercomputer market. However, he also believes the market is big enough for both firms to grow:
The good news, though, is that the market seems to be large enough for the two of them. Even as Intel appears to be gaining traction in this market, NVIDIA reported that its datacenter related sales were up 63% year-over-year last quarter. Management also expects growth in this segment in the current quarter as well.
Even if Intel is able to capture additional share relative to NVIDIA, it would seem that the market opportunity is currently large enough for the two of them to grow their respective revenue from this market.