Nvidia’s graphics processing units (GPUs) continue to power more than 80% of global AI accelerator sales, according to the latest industry data. In 2025 Nvidia shipped over 500,000 data-center GPUs to hyperscalers and cloud operators, up 45% year-on-year. The company’s full-stack approach—integrating its GPUs with proprietary networking, NVLink interconnects and AI software libraries—has driven a reported 70% gross margin in its data-center segment. Analysts estimate that Nvidia will maintain at least a 75% share of AI training workloads through 2026, underpinning consensus forecasts for 50% annual growth in data-center revenue over the next three years.

Since mid-2025 Nvidia has committed a combined $110 billion in strategic investments to two of the largest private AI start-ups. In September, Nvidia agreed to funnel $100 billion of systems and chips to OpenAI over the next five years, supporting its plans to deploy 10 gigawatts of AI data centers powered by Nvidia DGX platforms. In November, Nvidia pledged $10 billion to Anthropic, which is contracting up to 1 gigawatt of capacity on Microsoft Azure’s Nvidia-based infrastructure. These partnerships secured long-term chip orders worth more than $500 billion through early 2027 and lock in Nvidia as the exclusive hardware supplier for the two fastest-growing generative AI firms.

Nvidia’s unrivaled position as the primary hardware provider for leading AI start-ups and cloud platforms has prompted many institutional investors to increase their weighting in the stock. While Nvidia trades at a premium multiple relative to broader semiconductor peers—reflecting its near-monopoly in AI accelerators—its embedded revenue backlog now exceeds $500 billion, supporting consensus projections for fiscal 2027 sales of $320 billion. With no direct competitors able to match Nvidia’s scale of chip supply, interconnect software and custom AI systems, most analysts maintain a strong buy recommendation, forecasting that sustained hyperscaler demand and long-dated supply contracts will drive continuing double-digit earnings growth through 2028.