AMD Is Losing Ground to NVIDIA -- and It Could Get Worse
Advanced Micro Devices (NASDAQ: AMD) lost ground to arch-rival NVIDIA (NASDAQ: NVDA) in the discrete graphics card market in the second quarter, according to the latest report from Jon Peddie Research.
AMD finished the quarter with just 22% of the discrete GPU (graphics processing unit) market, down significantly from the prior-year period's 32%. NVIDIA regained substantial ground and exited the quarter with a 78% market share. Coronavirus-induced shelter-in-place orders led to an increase in video gaming activity, which in turn powered a spike in graphics card sales, and NVIDIA made the most of it.
Word of this setback for AMD comes at a time when its stock was trading close to all-time highs following the release of a new entry-level graphics card. What's more, it's about to face more heat from NVIDIA when the first of its new Ampere graphics cards hit the market later this month. None of this bodes well for AMD -- its share price had doubled year to date, but the stock is already down over 13% in September as investors digest signs of weakness in the company's business.
Source Fool.com
