Nvidia Dominates GPU Market With 94% Share: Is NVDA Stock Still a Buy in 2025?

Nvidia secures 94% of global GPU sales in Q2 2025. Discover why analysts remain bullish, key growth drivers, risks, and whether NVDA stock is still a buy now.

Introduction: Nvidia’s Market Domination in Focus

Few companies have defined the AI revolution quite like Nvidia (NASDAQ: NVDA). What was once a leading graphics card manufacturer for gaming PCs has now transformed into the beating heart of artificial intelligence (AI) infrastructure, high-performance computing, and data centers. The company’s trajectory in 2025 is nothing short of spectacular.

According to the latest Jon Peddie Research report, Nvidia commanded an eye-popping 94% share of worldwide GPU sales in Q2 2025, leaving rivals AMD and Intel far behind. With 11.6 million GPUs sold globally and sequential growth of nearly 27%, Nvidia is not only holding its dominance but strengthening it amid booming AI workloads and enterprise demand.

Yet, with NVDA stock down more than 8% from its August highs, investors are left wondering: Is this the right time to buy Nvidia shares, or should you wait for a better entry point?

Let’s dive deeper into the report, Nvidia’s positioning, analyst commentary, and what it all means for investors in 2025.

Nvidia’s Jaw-Dropping Market Share: 94% and Counting

The Jon Peddie Research findings cement what Wall Street has long understood: Nvidia isn’t just a leader in GPUs — it’s the undisputed king.

Market share: 94% in Q2 2025
Total GPUs sold: 11.6 million units
Sequential growth: +27% quarter-over-quarter

This growth wasn’t driven by consumer gaming alone. Instead, much of it came from:

AI Workloads: As enterprises race to deploy generative AI, demand for Nvidia’s GPUs has skyrocketed.
Data Centers: Cloud giants like Microsoft, Google, and Amazon continue to expand infrastructure with Nvidia chips.
Tariff Concerns: Some buyers accelerated purchases ahead of expected tariff hikes, adding to quarterly sales momentum.

Why does this matter? Because in semiconductors, scale creates a moat. The more GPUs Nvidia sells, the more entrenched it becomes across industries. Software developers, enterprises, and AI labs all build ecosystems around Nvidia’s CUDA platform, making it harder for competitors to catch up.

Why Nvidia’s Dominance Is Bullish for NVDA Stock

The report highlights several bullish themes for investors:

1. Pricing Power and Margins Stay Strong

With AMD and Intel barely registering in high-end GPU sales, Nvidia has the ability to set pricing on its own terms. This ensures robust gross margins — a key reason why its financials continue to exceed expectations.

2. AI Tailwinds Are Accelerating

Whether it’s training large language models, powering autonomous vehicles, or enabling AI PCs, Nvidia chips are at the core. A growing addressable market ensures demand won’t plateau anytime soon.

3. Resilience Against Tariffs & Supply Chain Risks

Even as governments consider stricter export controls and tariffs, Nvidia’s sheer dominance allows it to withstand disruptions better than smaller players. Customers often have no viable alternative, ensuring sales stability.

4. Software + Hardware Ecosystem

Beyond GPUs, Nvidia’s CUDA software stack has become the default environment for developers. This “network effect” further locks in customers, adding long-term competitive insulation.

Analyst Takes: Wall Street Remains Bullish

Bank of America’s $220 Price Target

Bank of America analyst Vivek Arya reiterated his “Buy” rating on Nvidia, with a $220 target price — about 30% upside from current levels. His thesis includes:

Strong Q2 results confirming “rock-solid” financials
The Blackwell architecture ramp, expected to drive meaningful growth in the second half of 2025
Nvidia’s push into the AI PC market, potentially with a stand-alone CPU or strategic partnerships

Arya’s view is clear: Nvidia’s dominance in AI is “hard to dislodge.”

Consensus on Wall Street

Nvidia remains a Street favorite in 2025:

Consensus Rating: Strong Buy
Average Price Target: ~$210
Upside Potential: ~25% from current levels

Despite being one of the most widely owned mega-cap stocks, analysts believe NVDA still has room to climb.

Technical Picture: NVDA Stock Pullback or Buying Opportunity?

From a technical analysis perspective, Nvidia’s 8% pullback from its August peak raises the question: Is this dip an opportunity?

Support Levels: NVDA has strong support around $160–165, which previously acted as a breakout zone.
Resistance Levels: The August high near $190 is the first ceiling to watch. Beyond that, $200 becomes the next psychological barrier.
Momentum Indicators: RSI has cooled from overbought territory, suggesting the stock may be consolidating before its next leg higher.

For long-term investors, dips like these often present attractive entry points, especially when fundamentals remain robust.

Growth Catalysts Ahead for Nvidia

1. The Blackwell GPU Ramp

Nvidia’s Blackwell architecture is expected to fuel the next wave of AI computing. Early adoption by hyperscalers could significantly boost revenue in the coming quarters.

2. AI PCs and CPU Partnerships

Rumors of Nvidia entering the AI PC market with either a standalone CPU or collaborations with companies like Qualcomm or Arm could unlock a massive new segment.

3. Enterprise AI Adoption

As corporations integrate AI into operations, demand for scalable GPU solutions will continue to soar. Nvidia sits at the core of this enterprise transformation.

4. Software Monetization

Beyond hardware, Nvidia is steadily building recurring revenue streams from AI software platforms, a long-term margin driver.

Risks to Watch

Despite its strengths, investors should remain mindful of potential risks:

Valuation: NVDA trades at a premium compared to peers, which could limit upside if growth slows.
Regulatory Pressures: Export restrictions, particularly to China, could weigh on revenue.
Competition: While AMD and Intel lag far behind, any technological leapfrog by rivals could challenge Nvidia’s leadership.
Macroeconomic Uncertainty: Global demand cycles, tariffs, or supply chain shocks could add volatility.

Investor Takeaway: Should You Buy Nvidia Stock Now?

Nvidia’s 94% market share in GPUs, surging AI demand, and analyst confidence make a compelling bullish case for NVDA stock. The recent pullback of over 8% may well be a healthy consolidation, offering investors a more reasonable entry point.

For long-term investors betting on the AI boom, Nvidia stands out as a key player. It isn’t merely benefiting from the trend — it’s creating the very foundation others are eager to leverage.

Short-term traders may want to monitor support near $165 and resistance at $190–200, but the broader trend remains firmly in Nvidia’s favor.

Conclusion

Nvidia’s dominance in 2025 underscores a simple truth: it isn’t just participating in the AI era — it is powering it. With 94% of the GPU market share, robust demand drivers, and Wall Street backing, NVDA stock still looks positioned for growth.

While risks around valuation and regulation remain, the company’s scale, ecosystem, and innovation pipeline make it one of the most important stocks of the decade. For investors seeking exposure to the AI megatrend, Nvidia continues to be the gold standard.

Author’s Note

This blog is only for educational and informational purposes. It reflects an independent analysis of Nvidia’s market position, financial outlook, and stock performance using publicly available data. Investors are strongly encouraged to take advice from a financial advisor before making investment decisions.

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