According to a recent report by Jon Peddie Research, the AIB market is stabilizing. It seems it has bottomed out, and that it is starting to recover.

In Q2 2009, total graphics card shipments reached 16.81 million units, a 3 percent increase over Q1, but 15 percent less than in the same quarter last year. In spite of that, the drop was more moderate than in the two quarters that preceded it. This all sounds nice, but bear in mind that shipments inQ4 2007 were 26.5 million.

Researchers point out that the recovery has been faster in the IGP market, with a 4 percent increase year-on-year. Consumers seem to have turned to IGPs and cheap AIBs, so it is safe to assume that the average selling price in the AIB market has also dropped.

JPR claims ATI has made some dents to Nvidia's market share, but there is still no evidence of a sustained growth in market share. ATI's market share has risen from 31 percent in Q1 to 35 percent in Q2, while Nvidia's share dropped 4 percent in the same period.

More here.