The AI accelerator market is growing at about 40% annually, but recent data shows this growth rate has slowed since 2024, raising questions about the sustainability of Nvidia's rapid expansion.

The expanding AI supply chain, including foundries and software developers, suggests Nvidia's market share might decline as competitors strengthen their positions.

Artificial intelligence is becoming the central focus of global technology investments, significantly impacting infrastructure and corporate strategies, and serving as a key valuation driver for Nvidia.

Nvidia's AI accelerators, including graphics processors and machine learning systems, are projected to make up nearly half of the company's revenue by 2028, driven by strong demand across cloud computing, enterprise, and government sectors.

The surge in hyperscaler infrastructure investments is fueling AI hardware demand, but signs of slowing growth in AI hardware sales indicate potential market saturation or disruption.

While Nvidia's sales are expected to continue rising until 2028, the slowdown in growth and external challenges suggest the company will need to adapt to a more uncertain and competitive landscape.

Hyperscalers like Microsoft, Amazon, and Google are expected to increase their AI-related capital expenditures to over US$450 billion by 2027, mainly for large-scale AI training and deployment.

Long-term risks for Nvidia include rising energy demands of AI data centers, geopolitical efforts to promote regional AI independence, and increased regulatory and political scrutiny.

These cloud providers plan to extend their AI investments into enterprise and government sectors, further driving demand for AI hardware and accelerators.

Nvidia's AI sales are expected to reach nearly US$400 billion by 2028, reflecting the increasing importance of AI hardware in global technology infrastructure.

Despite Nvidia's current dominance, competition from firms like Broadcom and AMD is intensifying, and the cyclical nature of the semiconductor industry could threaten future growth.