Thomas Alsop
Research expert covering the global hardware industry
Nvidia - statistics & facts
Nvidia's business has been transformed by demand from data centers at the heart of the artificial intelligence (AI) revolution. Now regarded as a pioneer and leader in AI, Nvidia chips are being used to train and run various generative AI programs. Capitalizing on the AI boom has helped to secure Nvidia’s place among the leading tech companies in terms of market capitalization, achieving a valuation of three trillion U.S. dollars in 2025. While the emergence of DeepSeek’s AI model raised questions over the reliance on Nvidia’s chips, wiping nearly 600 billion U.S. dollars from its market value, the company remains confident it can be the leading force in AI.
From gaming to AI giant
Nvidia specializes in the design of processors and chipsets, including graphics processing units (GPUs) for the gaming and data center markets. Nvidia’s Graphics segment focuses on consumer end markets, including the GeForce GPU series for gaming and PCs. The Compute & Networking segment includes products developed for AI and machine learning activities within data center environments. Riding high on the AI wave, Nvidia’s data center revenue exploded in its 2025 fiscal year, reaching 115.2 billion U.S. dollars – a 142 percent increase compared to the previous year. Nvidia's H200 and H100 GPUs have been the favored chips to help power AI, sourced by the likes of Microsoft, ByteDance, and Tesla for AI developments. Customers are now actively looking to source Nvidia’s next-generation Blackwell chips, with the company ramping up shipments through 2025 as it looks to meet demand.Tech firms are jumping on the AI hype train
Nvidia’s competitors in the GPU market include suppliers of both discrete and integrated graphics, markets that it dominates along with AMD and Intel. In addition to traditional chip firms, Nvidia is also beginning to observe competition arising from cloud computing providers in the form of Microsoft, Amazon, and Google. These companies are developing their own in-house chips to diversify supply lines and become less reliant on one source for AI chips. Moving forward, firms that can combine software and infrastructure packages with specialized in-house chips are set to prevail as the custom chip trend continues.U.S.-China tensions pose a threat to Nvidia
The company’s future growth has been slightly tempered as worries grow over the impact of export controls the United States government has already and continues to impose on China. Nvidia’s sales in China have already taken a hit, now accounting for less than 15 percent of its revenue, impacted by the restrictions that limit what the company can sell in the region. As such, Nvidia will need to remain agile to maintain its lead in the market, designing new chip lineups to comply with tightened export rules, while warding off growing competition from tech giants both close to home and those further afield.Thomas Alsop
,
Mar 5, 2025
Thomas Alsop
Research expert covering the global hardware industry
