NVIDIA Corp (NVDA)

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Nvidia’s Toughest GPU Competitors and Stock Outlook
By: Market Realist | December 30, 2019

Things have been heating up in the discrete GPU (graphics processing unit) market between Nvidia (NVDA) and Advanced Micro Devices (AMD). The latest contender is Intel (INTC), which is making a second attempt at producing its own discrete GPU.

The GPU market has been attracting investor attention since 2016, when Nvidia introduced the concept of GPU computing. It’s leveraging GPUs in PC gaming, crypto mining, autonomous driving, 5G, AI and machine learning computing from data centers to the edge.

Back in 2015, Nvidia took some major GPU market share away from AMD. However, AMD, in its Q4 of 2015 earnings, stated that it will launch new products that compete with Nvidia and win back its lost market share. And it did just that.



AMD’s return to the GPU space

As you can see in the above graph, AMD started to lose market share in the calendar third quarter of 2014. That’s when Nvidia gained market share. Due to reduced competition, Nvidia managed to boost revenues. However, a year later, in the third quarter of 2015, AMD gained some lost market share in the AIB (add-in-board) segment, while Nvidia lost. According to JPR (Jon Peddie Research), AMD’s market share grew from 18% in Q2 of 2015 to 18.8% in Q3 of 2015. Nvidia’s market share fell from 81.9% to 81.1% during the same period.

From this point forward, AMD’s market share only rose. It peaked at 36.1% in the second quarter of 2018, according to this JPR report. Meanwhile, Nvidia’s market share fell. It bottomed at 63.9% during this timeframe.

Both also companies launched new products in that period...

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