AMD Taking Market Share Back from Nvidia

Posted 11/12/2008 at 7:44am | by Paul Lilly

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For awhile there, things were looking pretty grim for AMD's graphics division, ATI. Nvidia could do no wrong, leaving AMD content to focus on the low to mid-range market and conceding the high-end altogether. Would ATI silicon ever be competitive again?

As we found out, the answer is yes. As a result, AMD's graphics chips have been able to take some market share away from Nvidia, according to a report by market research Jon Peddie Research.

"AMD has by all account exceeded expectations with its Radeon 4000 series," the report claims. "Priced aggressively yet delivering solid performance, AMD's new line not only took back some market share -- jumping up to 40 percent from 35 percent the quarter prior -- it forced Nvidia (and other partners) to cut prices on its recently released GTX 200 series product."

More than just price cuts, we've repeatedly referred to the situation as a price war between the two camps. Never have gamers been able to get so much gaming bang for their buck, and looking at the market share results, the war appears to be favoring AMD. Interestingly, JPR notes sequential growth in add-in boards (AIBs), which increased by over 2 million units from Q2 to Q3 2008, but a 15 percent drop in year-to-year growth.