Nvidia’s Unparalleled Dominance in the AI Chips Market
Nvidia has emerged as a dominant force in the global chips market for artificial intelligence (AI) , boasting a remarkable market share of 80-94% over the past three years, according to a report by Fourweekmba. This impressive performance is backed by Nvidia’s competitive hardware and an extensive software ecosystem, particularly the CUDA (Compute Unified Device Architecture) technology, which plays a crucial role in programming and software development tailored for Nvidia GPUs.
The vast majority of current AI projects leverage CUDA , making it challenging to substitute it with alternative technologies in ongoing projects. Companies like Huawei, which aim to capture a significant share of the Chinese market, are developing their own solutions, such as Cann (Compute Architecture for Neural Networks) . Similarly, firms like Moore Threads and Cambricon Technologies are working on their alternatives, named Muse and Neuware , respectively. However, Nvidia’s lead in CUDA provides a substantial barrier for these competitors seeking to dethrone them.
Nvidia’s GPU Market Share in Gaming
During the second quarter of 2025 , a staggering 11.6 million graphics cards for PCs and 21.7 million processors for desktop computers were distributed globally, as reported by US consultant Jon Pedie Research. While these numbers alone may not seem significant, they unveil a 27% growth in graphics card distributions and a 21.6% increase for CPUs, compared to the first quarter of 2025.
Distributed units allow us to train a very precise idea about market behavior
It is essential to clarify that these figures represent distributed units , not the units sold. Nevertheless, there is a strong correlation between the two, allowing industry analysts to gain invaluable insights into market behavior . Even more startling is the fact that Nvidia distributed an astonishing 94% of GPUs in the gaming market during Q2 2025, per Jon Pedie Research .
In stark contrast, AMD was only able to capture a 6% share of distributed units, while Intel was notably absent from the consultant’s report, indicating its minimal presence in the graphics hardware market. This stark distribution reveals the current status of the PC graphics hardware landscape. A key factor behind the upswing in distributed units of both graphics cards and PC processors during the second quarter of 2025 was the urgent need for retailers and consumers to stock up prior to the implementation of new tariffs approved by the US government.
Image credit: Xataka
For further details, please refer to Jon Pedie Research.
In Xataka, it’s reported that Nvidia is preparing for increased demand while facing regulatory challenges from the US government in the Chinese market.