FPGA Chip Market: Technical Analysis of NVIDIA's Growth and Investment Opportunities

Correlation between NVIDIA A-shares Fluctuation and FPGA Market

NVIDIA's stock price has shown significant fluctuations in the second half of 2024. On June 18, U.S. time, the company's market value peaked at $3.34 trillion, temporarily surpassing Apple (AAPL) and Microsoft (MSFT), securing the top position in market capitalization. However, after that, NVDA's price continued to decline, showing an adjustment of over 20% by the end of June, marking the worst monthly performance since September 2022. The company's value decreased by approximately $800 billion in less than half a month. After the stock price bottomed out in early August, NVIDIA shares returned to an upward trend, rising 25% over the month leading up to October 11, with the stock price increasing to $134.80, approaching the high of $135.58 recorded in June.

As the NVIDIA concept attracts attention once again, the trends of NVIDIA-related stocks are also being closely monitored. According to the consolidated financial results report announced by Taiwan Semiconductor Manufacturing Company (TSMC, 2330.TW) on October 9, the sales for September reached a record high of 2 trillion New Taiwan Dollars.

FPGA Technology and Market Growth Outlook

The FPGA chip market is expected to expand from $13.7 billion in 2025 at a compound annual growth rate (CAGR) of 13.1%, reaching a scale of $30.5 billion by 2032. By technology segment, SRAM technology is leading the market, with adoption progressing in industrial applications and communication infrastructure.

FPGA chips are gaining attention for their flexibility and power efficiency in AI inference processing, with advantages that allow optimization for specific applications compared to GPUs. There is a growing demand in data centers, the automotive industry, and the industrial automation market. The main growth factors for the FPGA market in 2025 are as follows:

• Expansion of applications as an AI/ML accelerator
• 5G/ORAN network infrastructure development
• Improving processing efficiency with edge computing
• Increased adoption of automotive ADAS systems

Competitive Landscape and Key Company Analysis

In the FPGA market of 2025, Intel is expected to maintain leadership, followed by AMD (formerly Xilinx) and Lattice. The market size is estimated to be around $11.14 billion, with competitors such as Microchip and Achronix also securing a certain share.

Regarding semiconductor manufacturing nodes, TSMC is leading with 7nm and 5nm processes and is advancing towards 3nm. Meanwhile, Intel Foundry Services aims to strengthen competitiveness with the 18A node by 2025. The supply and demand balance in the market is affected by competition among major companies.

Regional Market Outlook and Risk Factors

By region, the North American market is expected to grow to $4.625 billion by 2030, and the Chinese market is also anticipated to see significant growth due to accelerated technology investments. Europe and APAC (excluding China) are also expected to expand due to advancements in technological innovation.

In the regulatory environment of 2025, export regulations between the US and China are affecting the global sales of FPGAs. The United States is strengthening policies to close loopholes in chip exports, while China is making targeted investments in FPGA development through its "Big Fund." These policy changes are impacting the global semiconductor supply chain.

Risk factors in FPGA chip investment include technological obsolescence, supply chain disruptions, intensifying market competition, and changes in the regulatory environment. These factors need to be carefully evaluated in investment decisions.

Analysis of NVIDIA-related Stocks and Investment Value

With the rapid growth of the NVIDIA market, investment opportunities are emerging for FPGA technology companies. In particular, with the expansion of AI infrastructure, FPGAs, which allow for flexibility and optimization for specific applications, are playing a complementary role.

The FPGA market is projected to grow at an average annual rate of 12.6% from 2025 to 2033, with a market value expected to reach 32.3 billion dollars by 2035. The assessment metrics for 2025 are high, reflecting strong interest from investors. Recent M&A activities have seen large-scale deals, adding a premium to growth prospects. IPO activities are also robust, indicating confidence in the future potential of the market.

Looking at the trends in corporate revenue growth and gross profit margins, the overall FPGA market is growing at a CAGR of over 16%, from $12.1 billion in 2024 to $25.8 billion by 2029. The high-performance device segment is maintaining particularly high profitability, with the data center and cloud sectors being the main drivers of revenue growth.