Nvidia's 85% GPU Market Share Faces Growing Competition: Is This AI Stock Still a Buy for 2026?

• Nvidia is facing much contention successful the AI spot marketplace from AMD and Qualcomm.

• Despite that, the institution is inactive the favourite AI spot supplier of astir AI bundle companies.

• Nvidia's beardown financials marque unseating it a hard imaginable for its competitors.

• 10 stocks we similar amended than Nvidia ›

When you're talking astir the biggest banal marketplace stories of 2025, Nvidia (NASDAQ: NVDA) is simply a sanction that keeps coming up. The institution has been 1 of the biggest winners of the artificial quality (AI) boom.

The company's hardware, its graphics processing units (GPUs), person go synonymous with AI. Many of the astir precocious programs tally connected Nvidia chips -- truthful many, successful fact, that Nvidia has achieved a marketplace stock of 85%.

Nvidia is astir a monopoly connected its ain with marketplace power similar that. But determination are competitors emerging, namely Advanced Micro Devices (NASDAQ: AMD) and Qualcomm (NASDAQ: QCOM).

AMD holds 7% marketplace stock and growing, portion Qualcomm has introduced immoderate caller chips aimed astatine lower-end AI users who don't request the computing horsepower Nvidia's chips are packing.

So, is Nvidia going to stay the person of the AI hardware market?

While determination are galore risks to being connected apical -- the biggest 1 being that everyone is gunning for your spot -- I don't deliberation Nvidia is astatine immoderate hazard of being toppled anytime soon.

Let's commencement with the information that adjacent though AMD is increasing its marketplace share, it lone grew by 0.8% successful the 3rd 4th of 2025 to deed 7%. So it is simply a rival, but a slow-growing rival.

While Qualcomm's chips are definite to beryllium a disruption successful the market, 1 is owed to travel onto the marketplace this twelvemonth and the 2nd successful 2027. From there, it volition instrumentality clip to genuinely measure their effect connected the AI hardware market.

It's besides important to enactment that portion determination are competitors, Nvidia is the go-to prime for each the biggest AI bundle developers. OpenAI is simply a large idiosyncratic of Nvidia hardware, and successful September, it announced intent to deploy different 10 gigawatts of Nvidia chips . Microsoft (NASDAQ: MSFT) is besides a large buyer.

Despite the 1,252% summation implicit the past 5 years and its $4.45 trillion marketplace cap, Nvidia is inactive increasing and increasing quickly.

For its astir caller quarter, Q3 2025, Nvidia recorded gross of $57 billion, up 62% twelvemonth implicit year. In that aforesaid quarter, nett income surged 65% twelvemonth implicit year, and diluted net per stock (EPS) grew by 67%.

The institution besides grew its currency reserves from $43.2 cardinal connected Jan. 26, 2025 to $60.6 cardinal arsenic of Oct. 26, 2025. That means Nvidia could wage disconnected the entirety of its $10.82 cardinal successful indebtedness astir six times over.