Nvidia Poised to Maintain Dominance in Discrete GPU Market

Nvidia's dominance in the discrete GPU market is expected to continue through 2028, according to recent data. Over the past five years, Nvidia has outperformed AMD, with its stock surging 854% compared to AMD's 378%. The company controls around 90% of the market, while AMD holds a near-8% share.

Nvidia's GPUs are generally more powerful and efficient than AMD's, making them better suited for AI training tasks. The company also has a strong hold on its software ecosystem, with CUDA being natively optimized for most major AI frameworks. This makes it difficult for customers to switch to other GPUs.

While AMD is trying to catch up by focusing on cheaper chips and expanding into the data center market, Nvidia's focus on high-end GPUs has given it a strong lead. The company's revenue from data centers surged 117% year-over-year in its latest quarter, accounting for 92% of its top line.

Analysts expect Nvidia's revenue and EPS to grow at CAGRs of 60% from fiscal 2026 to fiscal 2029, while AMD's revenue and EPS are expected to grow at CAGRs of 52% and 95%, respectively. However, AMD's stock is priced higher than Nvidia's, with a multiple of 86 compared to Nvidia's 21.