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Data Center Spending and Nvidia’s Growth
Data center spending is projected to surge from $430 billion in 2024 to $1.1 trillion annually by 2029, as reported by Dell’Oro Group. This dramatic increase is largely driven by the rising demand for artificial intelligence (AI) technology.
Nvidia (NASDAQ: NVDA), the leading GPU provider, benefits significantly from this trend, with nearly 90% of its revenue now coming from data centers. In the second quarter of Nvidia’s 2026 fiscal year, the company reported total revenue of $46.7 billion, with $41.1 billion (88%) stemming from data centers—a 56% increase year over year. Nvidia holds a 94% market share in the GPU market, underscoring its pivotal role in meeting the computational requirements of AI.
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