Nvidia Dominates AI Chip Market
Nvidia continues to lead the AI chip market, holding over 90% of the discrete GPU sector, with its H100 data center GPUs priced around $25,000. In contrast, AMD offers more budget-friendly alternatives, such as the MI300X at approximately $15,000. Both companies have seen increased demand due to the rise of large language models and generative AI, contributing to a global AI chip market projected to grow at a CAGR of 27.9% from 2026 to 2035, according to Precedence Research.
Forecasted Growth for Major Chipmakers
Analysts anticipate significant revenue growth for Nvidia, AMD, and Broadcom, all of which target similar hyperscale clients. From fiscal 2025 to 2028, Nvidia’s revenue is expected to increase at a CAGR of 47%, while AMD and Broadcom are forecasted to see CAGRs of 34% and 38%, respectively, from fiscal 2024 to 2027 and fiscal 2025 to 2028. This indicates potential for all three companies to thrive in the expanding AI infrastructure market, expected to grow at a CAGR of 29.1% from 2025 to 2032.
