I've been using Wayland with Nvidia 1080 on one machine, and with 3080 on another for a year. Most of the time it is pretty fine. The issues happens with some applications (mostly written on Java, ocasionaly). But slowly the situation getting much better than earlier.
It dose work with NVidia GPUs too but propriatary software adopts slower to new technologies so the cards with propriatary drivers naturally have more issues and that's sadly still the case in a direct comparison but it's getting better fast