graphics card market boom: nvidia poised to win big

2025-03-27 nvidia

dublin, Thursday, 27 March 2025.
the graphics card market is projected to triple in value by 2029, reaching us$172.27 billion. this surge is fueled by the ever-increasing demand for high-performance gpus in gaming, ai, and data centers. nvidia, already a dominant force, stands to gain the most from this expansion. the company’s revenue and stock value could see a significant boost. this growth presents a golden opportunity for investors and industry players alike. the graphic card market is expected to grow from us$44.01 billion in 2024 to us$59.48 billion in 2025.

market growth and nvidia’s advantage

The graphic card market is experiencing substantial growth, driven by the increasing demand for high-performance GPUs [1]. The market is projected to increase from us$44.01 billion in 2024 to us$59.48 billion in 2025, reflecting a compound annual growth rate (CAGR) of 35.1% [1]. By 2029, the market is expected to reach us$172.27 billion, growing at a CAGR of 30.5% from 2025 [1]. Nvidia, as a major player in this market, is well-positioned to capitalize on this expansion, potentially leading to increased revenue and a stronger market position [1][2].

nvidia’s competitive edge

Nvidia holds a significant advantage in the GPU market, especially in data centers, where it controls a substantial percentage of the market [7]. The company’s profit margin stands at 56%, indicating strong profitability [7]. Nvidia’s CUDA software tools are used by 5.9 million developers, further solidifying its position [7]. However, Nvidia faces competition from AMD, whose Radeon RX 9070 XT is considered a strong contender, offering similar performance to Nvidia’s RTX 5070 Ti at a lower price of us$599, compared to us$749 for the RTX 5070 Ti [3].

gpu as a service market

The GPU as a Service (GPUaaS) market is also experiencing rapid growth, driven by the increasing adoption of AI, machine learning, and data analytics [5]. The GPUaaS market is expected to grow from us$8.21 billion in 2025 to us$26.62 billion by 2030, with a CAGR of 26.5% [5]. Nvidia is a key player in this market, competing with major companies like Amazon Web Services, Microsoft, Google, Oracle, and IBM [5]. Nvidia dedicated nearly 60% of its chip output to enterprise AI customers in early 2025, highlighting its focus on this sector [5].

challenges and us export policies

Despite the optimistic outlook, the GPU market faces challenges such as supply chain issues, high costs, and cryptocurrency market volatility [6]. U.S. export policies regarding advanced semiconductors to China also play a crucial role [8]. Restrictions on chip exports could harm Nvidia by reducing demand, but they may also indirectly benefit the company by hindering Chinese competitors [8]. Nvidia would likely prefer not to be bound by export controls, but some elements of the new export control package may help Nvidia by hurting its Chinese competitors [8].

potential for revenue growth

Nvidia’s potential for revenue growth is substantial, driven by the overall expansion of the GPU market and the increasing demand for AI-related technologies [1][5]. Spending on data centers is projected to increase to us$1 trillion annually by 2029, presenting a significant opportunity for Nvidia, which controls a high percentage of the GPU market for data centers [7]. Analysts forecast that Nvidia will grow its earnings at an average annualized rate of 33% in the coming years, reflecting strong confidence in the company’s future performance [7].

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graphics card market growth