AMD Is Losing Ground to Intel in This Key Chip Market
Advanced Micro Devices (NASDAQ: AMD) and Nvidia (NASDAQ: NVDA) hold a near-duopoly in discrete GPUs. Nvidia controls the majority of the market with its higher-end chips, while AMD remains the persistent underdog in the lower-end market. However, that duopoly could soon be threatened by Intel (NASDAQ: INTC), which recently returned to the discrete GPU market after an absence of more than two decades. According to JPR, Intel captured 4% of the discrete GPU market in the third quarter of 2022, compared to roughly 0% a year earlier. AMD's share dropped from 17% to 8%, while Nvidia's share rose from 83% to 88%.
It wasn't surprising to see AMD cede some of its market to Nvidia, but its losses to Intel are troubling because the latter has been targeting many of the same lower-end PC gamers as AMD. Let's see why Intel is expanding into discrete GPUs again, and how that expansion could throttle AMD's long-term growth.
Image source: Getty Images.
Source Fool.com
