Markets

AMD Gains Graphics Card Market Share, but Is Still a Distant Second to NVIDIA

Advanced Micro Devices (NASDAQ: AMD) gained ground against rival NVIDIA (NASDAQ: NVDA) in the graphics card market during the second quarter, even before the launch of its newest products.

Jon Peddie Research reported Thursday that AMD scored a 32.1% unit share of the discrete desktop graphics card market in the second quarter, up nearly 10 percentage points from the first quarter. NVIDIA remained the overwhelming market leader with a 67.9% unit share.

If integrated graphics processors and laptop graphics chips are included, AMD edged out NVIDIA in terms of unit market share in the second quarter. NVIDIA doesn't sell CPUs, so this comparison isn't apples-to-apples.

An AMD graphics chip.

Image source: AMD.

The overall market for desktop graphics cards contracted in the second quarter, with unit shipments down 16.6% from the first quarter and down 39.7% year over year. The industry continued to deal with the supply glut created by the collapse of the cryptocurrency bubble, which has reduced sales for both AMD and NVIDIA this year.

AMD launched the first two graphics cards based on its latest architecture in early July, after the end of the second quarter, and reviews were generally positive. The RX 5700 and RX 5700 XT beat comparably priced graphics cards from NVIDIA on performance, marking the first time in many years AMD has been genuinely competitive outside the lower end of the market.

With AMD able to compete with NVIDIA on performance and price, the company could see more market share gains over the next few quarters, especially if it rolls out additional products to compete at other price points.

10 stocks we like better than NVIDIA
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and NVIDIA wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of June 1, 2019

 

Timothy Green has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends NVIDIA. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

NVDA AMD

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More