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NVIDIA is sure to come out fighting

ATI is one of the biggest players in the discrete and integrated GPU market with rival NVIDIA. The two firms fight bitterly for dominance in the market and for the crown of fastest video card.

AMD has taken heat from analysts and investors since the purchase of ATI because the graphics unit has performed poorly for the most part. At one point in 2008, AMD was forced to take an $880 million write down related to ATI. AMD executives are feeling smug today with the announcement that ATI has taken the top spot in the discrete GPU market from NVIDIA for the first time since AMD purchased the company.

Jon Peddie Research (JPR) reports that the overall shipments of graphics cards for Q1 2010 were up 4%. However, shipments of video cards for the discrete desktop graphics market slipped 21.4% thanks in part to the massive growth of notebook sales. JPR reports that shipments are 38.6% above the same period last year for the market.

AMD posted the biggest gains in company history in both the discrete and integrated desktop products market. NVIDIA at the same time posted losses in shipments in all categories except its integrated notebook GPU business that grew 10%.

AMD had 24.4% of the GPU market for the quarter, Intel held 54.9%, and NVIDIA has 19.7% of the market. AMD reported that its revenue in the graphic segment grew 8% from the previous quarter and 87% when compared to the same quarter of last year with $440 million in revenue.

AMD claims that in the discrete graphics market it holds 51.1% of the market with NVIDIA having 44.5% of the market.

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RE: More bad news this week
By LordSojar on 7/30/2010 11:07:21 AM , Rating: 1
This is going to get worse before it gets better - Nvidia just lost the iMac business to ATI. Nvidia is not doomed, but it's not a good time to be buying Nvidia stock.

Right... because Apple and their massive desktop market share will clearly make a... oh wait... what market share? This move doesn't really hurt nVidia at all .

The only semi popular Mac product is the Macbook, which is still powered by nVidia's mobile solutions. In that regard, ATi's mobile solutions are actually fairly lackluster. They consume too much power to be viable in any sort of portability sense. Their discrete GPU for desktops are amazing, as are their desktop IGP solutions, but... their laptop and netbook solutions are sub par. Yes, the Mobility 5850 and 5870 are great performers, but they are also battery vampires. Who buys notebooks for gaming?

Think about what you type before you hit submit people. Saying this and that is gloom and doom for X and Y company is nonsense. ATi is doing well, nVidia is fine as well. Both are gaining and losing ground in different areas.

nVidia has the contract to produce all the graphics chips for the Nintendo 3DS. ATi got the contract for the iMac lineup mid-year refresh. You win some, you lose some. The important thing is that both companies continue to thrive and compete against each other, driving performance per watt up, and costs down. Never forget that.

Oh, and feel free to down rate this comment too, since clearly before looking up performance/watt values for ATi's current Mobility 5xxx solutions versus nVidia's, you will just assume I'm wrong. Bets on how long those who blindly praise ATi and their products to rate this down to a 0 or -1? I'd give it 20 minutes.

RE: More bad news this week
By spread on 7/30/2010 11:25:42 AM , Rating: 2
Depends which ATi products you mean. Yes the mobile HD5850 are power hogs but compared to their nVidia counterparts they're pretty much the same. The only good nVidia mobile solution (power wise) is their optimus tech.

There's lots of people who buy gaming notebooks as portable desktop replacements. They're also good for doing design work.

RE: More bad news this week
By JKflipflop98 on 8/1/2010 1:12:21 AM , Rating: 2
Discounting 10% of the market is a stupid move.

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