AMD Is Losing Graphics Market Share Despite Vega

Advanced Micro Devices (NASDAQ: AMD) reentered the high-end graphics card market earlier this year when it launched Vega, its highly anticipated attack on NVIDIA's (NASDAQ: NVDA) dominance. The RX Vega 64 and RX Vega 56 caught up to NVIDIA in terms of performance, but they used far more power than comparable NVIDIA products, which had been on the market for over a year. Vega was a catch-up play from AMD, not the home run that investors were hoping for.

According to Jon Peddie Research, Vega failed to provide a boost to AMD's market share. In fact, AMD lost discrete GPU unit market share in the third quarter, compared to both the previous quarter and the prior-year quarter. The market for graphics cards grew by more than 20% year over year, so AMD still managed to grow its GPU sales. But its position weakened relative to NVIDIA.

Image source: AMD.

Source: Fool.com