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Monday, 02 August 2010 09:11

Nvidia losing ground in graphics chip market

Written by Nick Farell


Intel is supreme
Nvidia is in double digit decline while its rivals AMD and Intel give it a good kicking. According to figures from Jon Peddie Research, Intel still holds the top spot while Nvidia saw double-digit declines in most segments.

AMD saw huge gains through its ATI business and it looks like this is coming at the expense of the Green Goblin. Nvidia saw double-digit losses across every segment except for notebooks, where the company grew shipments 10 percent over the first quarter. The report came two days after Nvidia officials issued a warning about weak second-quarter earnings, which reportedly added fuel to worries of a consumer slowdown in PC purchases.

Nvidia aslo blamed a “greater-than-expected shift” away from discrete GPUs to lower-priced GPUs and PCs with integrated graphics. However it is nothing to do with the economy and more to do with Nvidia losing ground. Jon Peddie Research reported that in the second quarter, overall graphics shipments grew 4.3 percent over the previous quarter, but were about the same as the same three months last year. For the first half of 2010, shipments were up 38.6 percent.

Intel saw its market share grow to 54.9 percent, up from 49.7 percent in the first quarter, and unit shipments grow 15.3 percent. Intel's Clarkdale processors release seemed to have helped and the continued sales of Atom processor for netbooks. Strong notebook sales also buoyed Intel’s position. AMD saw shipments jump 32.6 percent over the same period last year, and 19.1 percent over the first period, giving the vendor a 24.4 percent market share. It had the largest gains in both discrete and integrated desktop graphics products.

AMD officials said its graphics revenue grew eight percent over the first quarter, and 87 percent over the same period last year, driven by record GPU shipments.
Last modified on Monday, 02 August 2010 10:39
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