NVIDIA Responds to JPR Market Figures
This follow-up is a more detailed look at Nvidia's performance in discrete GPU sales. Nvidia doesn't contest the JPR article as such, but is concerned that the expected decline of their integrated chipset business could confuse readers into thinking that the company's share of the discrete market is slumping badly. Hence, this article. All of the data discussed below was gathered by Mercury Research, an independent analysis firm.
As recently as a year ago, Nvidia held a 16 percent advantage over AMD. At present, the two are all-but-tied, with Team Green a scant two percent ahead.
The graph starts with a 65/35 split between Nvidia and AMD. As of Q1 2011, Nvidia holds an estimated 59.4 percent to AMD's 40.6 percent
The two companies start off tied at 50/50 in Q1 2010. At present, AMD holds 58 percent of the market.
Yesterday's analysis examined Nvidia's overall share of the entire graphics market, the challenges it faces, and how the company is growing both Tesla and Tegra in an effort to simultaneously diversify its portfolio and encompass a much larger definition of computing. Here, we've focused on Nvidia's performance in its own home turf. Within the discrete market, Nvidia's sales and net revenue are both strong; the dips and arcs we see between Teams Green and Red are indicative of healthy competition.
While it faces formidable obstacles in the years to come, Nvidia is playing against them from a fairly good position. It's current GPU business is strong enough to support the company as it diversifies its product mixture. That's not going to change in the near future, even if further quarters show significant declines in chipset shipments.