What happened
Nvidia currently holds a 90% market share in data centre GPUs for AI, with the AI chipset market projected to increase by 34% annually through 2032. This market position is contingent upon sustained AI spending, the maintenance of competitive advantage, and stable geopolitical conditions. The company's high valuation necessitates flawless execution, with Nvidia actively pursuing innovation, strategic partnerships, and market expansion to solidify its standing.
Why it matters
The substantial market share of a single vendor in critical AI infrastructure introduces a significant supply chain constraint for procurement and platform operators. This concentration increases exposure to vendor-specific risks, including potential price volatility, supply chain disruptions, and technology lock-in, raising due diligence requirements for long-term strategic planning and vendor diversification. This creates an oversight burden for IT and procurement teams.
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