Nvidia has emerged as a \u00a0dominant force\u00a0 in the global chips market for \u00a0artificial intelligence (AI)\u00a0, boasting a remarkable market share of \u00a080-94%\u00a0 over the past three years, according to a report by Fourweekmba<\/a>. This impressive performance is backed by Nvidia’s \u00a0competitive hardware\u00a0 and an extensive software ecosystem, particularly the \u00a0CUDA (Compute Unified Device Architecture)\u00a0 technology, which plays a crucial role in programming and software development tailored for Nvidia GPUs.<\/p>\n <\/p>\n The vast majority of current AI projects leverage \u00a0CUDA\u00a0, 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 \u00a0Cann (Compute Architecture for Neural Networks)\u00a0. Similarly, firms like Moore Threads and Cambricon Technologies are working on their alternatives, named \u00a0Muse\u00a0 and \u00a0Neuware\u00a0, respectively. However, Nvidia\u2019s lead in CUDA provides a substantial barrier for these competitors seeking to dethrone them.<\/p>\n <\/p>\n During the \u00a0second quarter of 2025\u00a0, a staggering \u00a011.6 million graphics cards\u00a0 for PCs and \u00a021.7 million processors\u00a0 for desktop computers were distributed globally, as reported by US consultant Jon Pedie Research<\/a>. While these numbers alone may not seem significant, they unveil a \u00a027% growth\u00a0 in graphics card distributions and a \u00a021.6% increase\u00a0 for CPUs, compared to the first quarter of 2025.<\/p>\n <\/p>\n Distributed units allow us to train a very precise idea about market behavior<\/p>\n<\/p><\/div>\n<\/div>\n It is essential to clarify that these figures represent \u00a0distributed units\u00a0, not the units sold. Nevertheless, there is a strong correlation between the two, allowing industry analysts to gain invaluable insights into \u00a0market behavior\u00a0. Even more startling is the fact that Nvidia distributed an astonishing \u00a094% of GPUs\u00a0 in the gaming market during Q2 2025, per \u00a0Jon Pedie Research\u00a0.<\/p>\n <\/p>\n In stark contrast, \u00a0AMD\u00a0 was only able to capture a \u00a06% share\u00a0 of distributed units, while \u00a0Intel\u00a0 was notably absent from the consultant\u2019s 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.<\/p>\n <\/p>\n Image credit: Xataka<\/p>\n For further details, please refer to Jon Pedie Research<\/a>.<\/p>\n In Xataka, it\u2019s reported that Nvidia is preparing for increased demand while facing regulatory challenges from the US government in the Chinese market.<\/p>\nNvidia’s GPU Market Share in Gaming<\/h2>\n