Advanced Micro Devices (NYSE:
) expects its revenue to
drop by 11 percent
. Could this decline be the opportunity NVIDIA (NASDAQ:
) has been seeking? Over the past decade, NVIDIA has battled AMD
for the crown of graphic processing. From game consoles to
tablets and other devices, the two companies account for
almost 100 percent
of the graphics processor unit (GPU) market. Both firms
specialize in bringing graphic acceleration to PC users, allowing
graphic designers, video editors and other professionals to power
their most graphic-intensive programs. Consumers also benefit
from AMD and NVIDIA's graphic accelerators, as they enable Macs
and PCs to play HD video and high-end video games.
NVIDIA has recently gained a significant edge over AMD by
securing multiple deals with Apple (NASDAQ:
). While the company's products do not power any of Apple's
current iDevices, the Mac maker proudly touted its use of NVIDIA
chips when unveiling the next-gen MacBook Pro. NVIDIA graphics
can also be found within the standard (revised) MacBook Pros.
However, AMD's chips remain within the aging Mac Pro, as well as
the recently upgraded iMac and Mac Mini.
AMD recently lost a major opportunity to excel when Microsoft
) announced that it would use NVIDIA's Tegra 3 processor for its
upcoming tablet, Surface. As the first major hardware release
from Microsoft since Xbox 360 and Zune, (the latter of which
flopped), Surface is expected to make waves within the tech
industry. The highly anticipated tablet is seen as a potential
threat to Apple's domain, as its Windows 8 operating system could
allow business users to perform more tasks than the iPad.
) dealt another blow to AMD when it announced that it would also
use the Tegra 3 for its tablet, the seven-inch Nexus 7. Priced at
$199, the Nexus 7 is expected to cut into the small, yet
lucrative market for seven-inch tablets. That market is currently
dominated by Samsung and Amazon (NASDAQ:
), with Amazon rumored to add NVIDIA processors to its next-gen
tablet. Samsung's tablets already include NVIDIA technology.
With AMD's expected decline, investors have been given a
glimpse into the future of the processor market. While NVIDIA's
shares have been climbing slowly, (albeit, with a few dips in
between), AMD has dropped roughly 40 percent in the last three
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