AMD Gains Market Share While Nvidia Is Still On Top

According to market reports, AMD is taking back market share from rival Nvidia.

AMD vs Nvidia

According to the website fool.com, the company Advanced Micro Devices (AMD) lost half of its market share on the discrete graphics card market between mid-2014 and mid-2015. During the same interval, rival Nvidia has great success with its GTX 970 and other graphics cards of the 900 series.

During the second quarter of 2015, AMD's market share dropped at just 18 percent. But over the past year, the company has been slowly recovering its way back.

In the second quarter of this year, AMD's comeback accelerated. Compared to the first quarter, the company was able to gain around 7 percentage points of market share and nearly 12 percentage points year over year.

According to Jon Peddie Research (JPR), the computer hardware market trends show that GPU sales for Q2 2016 nearly hit a multi-year low after dropping by around 20.8 percent from the previous quarter. But AMD managed to improve slightly its sales and gained market share during the quarter, while sales of desktop discrete GPUs made by Nvidia were down in terms of units.

The GPU Market Is Changing

According to AnandTech, the market analysis of the numbers for Q2 2016 shows that the GPU market is changing. Integrated GPUs have become in the last five years a significant product in the desktop market. Integrated GPUs are useful for more than basic spreadsheets and texts.

Every year, high-end discrete GPUs continue to gain processing power and their level of performance still far ahead of integrated GPUs. Gamers who need advanced graphics add-in-boards make a large market for high-end GPUs.

It is difficult to predict when demand for high-end graphics cards will peak and unit sales of desktop discrete video cards will hit the bottom. Every year, millions of low-end discrete desktop graphics cards are still sold every year.

In the second quarter of 2016, the industry sold an estimated number of discrete GPUs (for desktops and notebooks) between 17.33 and 17.86 million units. In the same period of Q2 2016, shipments of standalone GPUs were down 14.19 percent from the previous quarter.

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