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VOL. 8, ISSUE 2 (2026)
NVIDIA's competitive strategy in the AI era: A case study of competitive advantage and strategic choice
Authors
Dr. Lung-Tan Lu
Abstract
Driven by the rapid development of Generative
Artificial Intelligence (Generative AI), the demand for high-performance
computing (HPC) and artificial intelligence (AI) computing power has grown
explosively, reshaping the competitive landscape of the global semiconductor
industry. Benefiting from continuous technological innovation in Graphics
Processing Units (GPUs), the CUDA software platform and the construction of a
comprehensive ecosystem, NVIDIA has transformed from a graphics chip supplier
into a global leader in AI infrastructure. Adopting the case study method, this
research analyzes NVIDIA’s sources of competitive advantages, product portfolio
strategies and future development directions based on the Resource-Based View,
Dynamic Capabilities Theory and Ecosystem Theory. The research results indicate
that NVIDIA’s core competitive advantages stem from sustained R&D
capabilities, the CUDA software ecosystem, efficient supply chain collaboration
and its leading position in the data center market, which jointly form high
entry barriers and strong network effects. Nevertheless, the company still
faces multiple threats including supply chain concentration, geopolitical
risks, high customer concentration and challenges from emerging competitors.
This paper further explores growth opportunities via product portfolio analysis
and strategic matrices, and puts forward targeted strategic recommendations:
further integrating AI platforms, expanding enterprise-level application
markets, and strengthening cooperation with global ecosystem partners. The
findings not only clarify the formation mechanism of competitive advantages in
the AI industry, but also provide practical references for high-tech
enterprises to formulate competitive strategies and develop industrial
ecosystems.
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Pages:57-68
How to cite this article:
Dr. Lung-Tan Lu "NVIDIA's competitive strategy in the AI era: A case study of competitive advantage and strategic choice". International Journal of Management and Commerce, Vol 8, Issue 2, 2026, Pages 57-68
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