Market Overview: Nvidia and AMD
Nvidia (NASDAQ: NVDA) currently dominates the discrete GPU market with a 90% share as of Q2 2026, according to Jon Peddie Research, while AMD (NASDAQ: AMD) holds an 8% share. Both companies are increasingly focusing on the data center market to support AI technologies, with Nvidia seeing a 117% year-over-year increase in data center revenue, making up 92% of its overall revenue in its latest quarter. In comparison, AMD’s data center revenue rose by 107% but only constituted 58% of its overall revenue.
Over the past five years, Nvidia’s stock has surged 854%, compared to AMD’s 378%. Analysts project Nvidia’s revenue and EPS will grow at compound annual growth rates (CAGR) of 60% from fiscal 2026 to fiscal 2029, while AMD is expected to see growth rates of 52% and 95%, respectively.
While both companies stand to benefit from the expanding AI market, Nvidia’s proprietary software ecosystem (CUDA) reinforces its market position, making it challenging for AMD to compete effectively. Nvidia’s focused approach on AI-driven data centers could give it a significant edge over AMD in the coming years.
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