**Nvidia Dominates AI Inference Market**
Nvidia continues to lead the AI inference chip market, controlling approximately 74% as of Q1 2026. The company sold $41 billion worth of AI inference processors during the quarter, up from $18 billion year-over-year. This growth reflects an eight percentage point increase in market share, and Nvidia’s revenue in this sector surpassed both Broadcom’s and AMD’s combined AI revenues.
**Market Dynamics**
As AI moves from training to inference, Deloitte estimates that inference workloads will account for two-thirds of computing power in AI data centers in 2026, up from one-third in 2023. Broadcom and AMD are capitalizing on this shift, with Broadcom projected to hold 60% of the custom AI processor market by 2027. Broadcom’s AI revenue soared 143% year-over-year to $10.8 billion in fiscal Q2 2026, and it anticipates further growth to $16 billion in the current quarter.
**Comparison of Key Players**
While Broadcom’s AI revenue is expected to reach $100 billion next year and AMD’s server CPU revenue is projected to grow by 70% year-over-year, both companies lag behind Nvidia. AMD’s server CPU addressable market is estimated to reach $120 billion by 2030, double previous forecasts, underscoring the competitive landscape in AI hardware.
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