AMD quickly losing ground in graphics market

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AMD quickly losing ground in graphics market

Tiburon (CA) – AMD apparently has lost more market share in the graphics market during the second quarter of the year. Meanwhile, Nvidia is running away and gaining ground on Intel rapidly.

There were some concerns, whether Nvidia could survive on its own when AMD announced the acquisition of ATI last year. At least for now it appears that, in terms of market penetration, the integration of its main rival into AMD has not hurt Nvidia at all.

According to a report released by Jon Peddie Research (JPR) today, ATI is estimated to have reached a market share of 19.5% in the second quarter of this year, down from 21.9% in Q1 and down from 26.7% one year ago. Nvidia, on the other hand, is listed by JPR with 32.6%, up from 28.5% in Q1 and up from 19.7% last year.

In absolute shipment numbers, JPR estimates AMD’s (ATI’s) shipment numbers to have fallen from 19.7 million graphics devices in Q2 2006 to 15.9 million units in Q2 2007. In the same time frame, Nvidia is estimated to have increased its shipments by almost 83%, from 14.5 million to 26.5 million units. Nvidia’s advance is especially apparent in the desktop market where the company holds an overall market share of 43%, ahead of Intel’s 38.5% and AMD’s 23%.

In the overall market, Intel remains the frontrunner of the pack with shipments of 30.6 million units and a market share of 37.6%, down from 40.4% one year ago.

JPR said that graphics shipments came in at 81.3 million units, up 3% from Q1 and up more than 8% from Q2 2006.

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