NVIDIA Responds to JPR Market Figures

When we published our analysis of JPR's Q1 2011 GPU market share yesterday, we noted that Nvidia's share of the entire market had dropped significantly due to declining sales in their integrated graphics business. We also discussed how the rise of 'Fusion' hardware from both AMD and Intel will inevitably squeeze NV's share of the lower-end GPU market in years to come.

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.
Here's the entire discrete graphics market. AMD's improved its share significantly over the past year, rising from 42 percent to 49 percent. We see the two companies swap positions for about a quarter. Since sales lag announcements, we're guessing AMD pulled slightly ahead thanks to its top-to-bottom portfolio of 5000-series Radeon cards at a time when only the GTX 470 and GTX 480 were available from Nvidia.

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 graph above refers only to the desktop discrete market. AMD's gains were even more impressive here, with desktop discrete sales rising almost a full ten percentage points from Q1 to Q2 2010. Again, we see evidence of how NV's later 400-series products improved the company's sales. At present, NV holds ~60 percent of the desktop discrete market.

The two companies start off tied at 50/50 in Q1 2010. At present, AMD holds 58 percent of the market.

Finally, there's notebook discrete. This is where NV lost significant ground over the past year, although it's not clear as to why.  While it has yet to regain all the ground it lost,the company's Optimus technology and aggressive mobile product positioning are both aimed at closing the gap with AMD.

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.