Nvidia Set to Maintain Dominance Over AMD Through 2028

Nvidia and AMD are the two dominant players in the discrete graphics processing unit (GPU) market. According to Jon Peddie Research, Nvidia controlled 90% of the market share in the second quarter of 2026, while AMD held an 8% share.

In recent years, both companies have shifted their focus from PC gaming to the data center market, where high-end GPUs are used for training large language models and AI algorithms. This shift has been driven by the explosive growth of the AI market.

Nvidia's GPUs are more powerful and efficient than AMD's, making them better suited for AI training tasks. Nvidia also locks in its customers with CUDA, its proprietary software ecosystem, which is natively optimized for most major AI frameworks.

The two companies have different revenue mixes, with Nvidia generating the majority of its revenue from data center GPUs and AMD selling both GPUs and x86 CPUs for PCs and servers.

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.

Nvidia's dominant position in the market, combined with its strong growth prospects and low valuation, suggest that it will remain ahead of AMD through 2028.