Nvidia’s AI Dominance Faces Growth Challenges and Rising Competition

Despite record-breaking revenue and market share, analysts question Nvidia's long-term growth as rivals and shifting AI trends emerge.

Nvidia has solidified its position as a leader in AI chips, holding a 90% market share in GPUs and achieving significant revenue growth driven by AI demand.
The company’s GPUs, supported by its CUDA software platform, remain a standard in AI infrastructure, providing backward compatibility and reducing obsolescence concerns.
While Nvidia’s valuation remains robust, analysts warn that AI-related demand may slow as companies shift from training large models to more cost-efficient inference tasks.
Competitors such as AMD, Intel, and in-house solutions from major customers like Amazon and Google present growing threats to Nvidia’s market dominance.
Upcoming product launches, including Nvidia’s Blackwell architecture and H200 chip, are expected to sustain short-term growth, but long-term demand trends remain uncertain.