Nvidia remains a dominant player in the AI space with no real competition in sight. In the last 2 years, Nvidia has positioned itself at the forefront of the AI revolution.
Nvidia's CUDA and GPUs have allowed the firm to capture a big portion of the market. Meanwhile, AMD has managed to find its niche in the form of AI data centers. However, reports show that AMD is still lagging behind Nvidia.
This makes one wonder if Nvidia has really checkmated AMD and now there's no competition left? To answer that, we need to take a closer look at AMD and Nvidia.
When the AI megatrend initially started, Nvidia managed to get the first mover advantage over AMD and other companies. This allowed Nvidia to enjoy outsized growth and also allowed it to make partnerships with big-name firms.
As a result, Nvidia has managed to get a bigger lead over AMD, which is also in the chip sector. That's why the market share of Nvidia in the AI accelerators is now around 88%.
On the other hand, the market share of AMD is only near 4% which shows the stark difference between the two companies.
Since the start of 2025, the AMD shares are up by 18% which is a little better than Nvidia. This also highlights that the gains of the AMD are not justified when we look at the performance of the Nvidia.
Also, it's worth noting that AMD is set to release new chipsets, which could attract more clients. On the other hand, Nvidia is also all set to release new chips, which means there will be fierce competition.
But for now, it is clear that Nvidia is the clear winner in this AI race, and AMD is left far behind. Now, the AMD will need really strong chips with good pricing to even think of outcompeting Nvidia.