AMD Has a Golden Opportunity in the Graphics Card Market
The graphics card market is dominated by Nvidia (NASDAQ: NVDA). The gaming and AI powerhouse has a 90% unit market share, according to Jon Peddie Research, with Advanced Micro Devices (NASDAQ: AMD) in a distant second place. While Nvidia's market share fluctuates, the company has held an enormous lead over AMD for years.Over the past few years, Nvidia's data center business has exploded as demand for AI accelerators boomed. In the fourth quarter of Nvidia's fiscal 2025, data center revenue was nearly 14 times larger than gaming revenue, and gaming revenue hit its lowest level in more than a year. Nvidia relies on TSMC for manufacturing, and it's prioritizing its pricey artificial intelligence (AI) accelerators over its gaming graphics cards.The launch of Nvidia's RX 50 series graphics cards earlier this year put the company's priorities on display. Supply was far below demand, leading to availability issues and retail pricing far above manufacturer's suggested retail price (MSRP). There were also a variety of issues, including quality control shortfalls that led to some graphics cards shipping with defective hardware and software driver bugs.Continue reading
The graphics card market is dominated by Nvidia (NASDAQ: NVDA). The gaming and AI powerhouse has a 90% unit market share, according to Jon Peddie Research, with Advanced Micro Devices (NASDAQ: AMD) in a distant second place. While Nvidia's market share fluctuates, the company has held an enormous lead over AMD for years.
Over the past few years, Nvidia's data center business has exploded as demand for AI accelerators boomed. In the fourth quarter of Nvidia's fiscal 2025, data center revenue was nearly 14 times larger than gaming revenue, and gaming revenue hit its lowest level in more than a year. Nvidia relies on TSMC for manufacturing, and it's prioritizing its pricey artificial intelligence (AI) accelerators over its gaming graphics cards.
The launch of Nvidia's RX 50 series graphics cards earlier this year put the company's priorities on display. Supply was far below demand, leading to availability issues and retail pricing far above manufacturer's suggested retail price (MSRP). There were also a variety of issues, including quality control shortfalls that led to some graphics cards shipping with defective hardware and software driver bugs.
