When comparing the data segment revenues of Nvidia, AMD, and Intel, it is clear that Nvidia has experienced extraordinary growth in recent quarters. In the fourth quarter of the 2024 calendar year, Nvidia generated 35.6 billion U.S. dollars through its data center segment, a part of the business that includes graphics processing unit (GPU) sales. GPUs are used to train and run various large language models, most notably ChatGPT, the one developed by OpenAI.

In its 2025 fiscal year, Nvidia's revenue in the United States amounted to 61.26 billion U.S. dollars, a substantial jump from the 26.97 billion U.S. dollars seen in the previous fiscal year. Revenue in Taiwan amounted to 20.57 million U.S. dollars in the 2025 fiscal year, while China related revenue reached 17.11 billion U.S. dollars. Nvidia’s business overview Nvidia is a U.S. technology firm specializing in the design of graphics processing units (GPUs) for the gaming and professional markets, as well as system-on-chip units (SoCs). Headquartered in Santa Clara, California, the company was founded in 1993 by Jensen Huang who, following on from time spent as a microprocessor designer at Advanced Micro Devices (AMD), has been Nvidia’s president and CEO from the outset. Nvidia’s specialized markets In Nvidia’s 2025 fiscal year, the fourth quarter saw data center revenues climb to 35.6 billion U.S. dollars, a surge that has seen it become the darling of stocks and a global leader in artificial intelligence (AI). Nvidia’s technologies and solutions are being deployed for accelerated computing and generative AI applications.

Worldwide spending on data center systems is projected to reach 260 billion U.S. dollars in 2024, marking a significant 10 percent increase from 2023. This growth reflects the ongoing digital transformation across industries and the increasing demand for advanced computing capabilities. The surge in data center investments is closely tied to the rapid expansion of artificial intelligence technologies, particularly with the wake of generative AI. AI chips fuel market growth The rise in data center spending aligns with the booming AI chip market, which is expected to reach 92 billion U.S. dollars by 2025. Nvidia has emerged as a leader in this space, with its data center revenue skyrocketing due to the crucial role its GPUs play in training and running large language models like ChatGPT. The global GPU market, valued at 65 billion U.S. dollars in 2024, is a key driver of this growth, powering advancements in machine learning and deep learning applications. Semiconductor industry adapts to AI demands The broader semiconductor industry is also evolving to meet the demands of AI technologies. With global semiconductor revenues surpassing 526 billion U.S. dollars in 2023, the market is expected to approach 611 billion U.S. dollars in 2024. AI chips are becoming increasingly prevalent in servers, data centers and storage infrastructures. This trend is reflected in the data centers and storage semiconductor market, which is projected to grow from 78 billion U.S. dollars in 2023 to 136 billion U.S. dollars by 2025, driven by the development of image sensors and edge AI processors.

In 2024, Intel generated 53.1 billion U.S. dollars in revenue, with 30.3 billion U.S. dollars generated by the company's Client Computing Group, its core business unit serving the PC market. Revenues associated with Intel's data center and AI activities amounted to 12.8 billion U.S. dollars in 2024, a part of the business that is expected to receive greater interest moving forward. Integration of AI into PCs and data centers Intel is in a good position to benefit from the growing adoption of AI PCs, with its processor technologies helping to support AI applications on many devices. As well as PCs, growing demand for AI chips across data centers offers Intel further opportunities for growth, particularly as it looks to close the gap on the market leader Nvidia. Strategic initiatives and industry dynamics To strengthen its position in the evolving semiconductor market, Intel has been pursuing strategic initiatives such as its IDM 2.0 strategy. This plan involves expanding manufacturing capabilities and establishing Intel Foundry as a service that can serve external customers, enabling Intel to compete with the leading semiconductor foundries globally.