AMD Still Trailing NVIDIA in Graphics Market | VR Life

AMD Still Trailing NVIDIA in Graphics Market


The shares of Advanced Micro Devices (AMD) rallied strongly after the company released better-than-expected quarterly results due, mostly, to the fact that investors tend to get very greedy when betting on a turnaround. Despite the fact that the chipmaker had a great quarter, Advanced Micro Devices still remains in troubled waters and investors should only use the rally to get out of the stock.

NVIDIA outperformed the market in 2015, whereas Advanced Micro Devices struggled, And despite the fact that Advanced Micro Devices’ stock price surged around 50 percent after its first quarter 2016 earnings, the company still faces fierce competition from NVIDIA and Intel (INTC).


NVIDIA moved on, shifting its focus to new markets by making efficient use of its GPU skills, and this seems to be paying off. In the fourth quarter of the 2015 financial year, NVIDIA’s top-line attained a record high of $1.4 billion and for the full-year 2015, a surge of 12 percent year-over-year. Meanwhile, for the time being, Advanced Micro Devices’ Q1FY16 revenue dived 19 percent year over year to $832 million.



NVIDIA is leading Advanced Micro Devices, not only in terms of revenue, but also in terms of market share. Part of NVIDIA’s rise comes as a result of branching out its GPU expertise. NVIDIA’s GPUs are currently being used in desktop, as well as Virtual Reality and driverless cars, whereas Advanced Micro Devices is still lagging in both of these strongly growing markets. NVIDIA’s GeForce GTX 970 and 980 GPUs account for the prominent graphics cards for computers that can support high-end Virtual Reality devices like the HTC Vive and the Oculus Rift.


At present, with the virtual Reality desktop market still at its infant stage of deployment, translating to almost 1 percent of all PCs on the market, it is projected by industry watchers and analysts to escalate at a rapid rate in the coming few years. There will be around 171 million VR users around the globe, and the market size will increase to $70 billion by 2020, according to estimates.


Furthermore, NVIDIA is also making use of its graphics cards to power its all new DGX-1 supercomputer. The server is proposed to be used for different types of high-end calculations, comprising collecting data for driverless cloud from the cloud.


AMD’s response

Advanced Micro Devices’ new Radeon GPUs are being used to power several VR computers, but with its distinct GPU market share far behind NVIDIA’s, the company would not make a dent in the VR market as efficiently as NVIDIA.


Nonetheless, Advanced Micro Devices announced, last month, The Radeon Pro Duo graphics card which has two Fiji-class graphics chips, and features LiquidVR, AMD’s platform for VR creation. AMD claims it is the fastest in the world, with 16 teraflops in computing performance and speeds that are 1.5 times faster than rival Nvidia’s GTX Titan X card.

“Until now, multiple GPU setups have been used by gamers to get maximum performance from their games,” according to Roy Taylor, the corporate vice president of alliances at AMD, in an email. “But dual graphics processing unit boards have not been targeted at content creators. Radeon Pro Duo has been designed to be the first of a new breed of products to take advantage of dual GPU scaling in 3D Studio Max, as well as Maya and soon-to-be-announced other design and creation tools.”

The new card utilizes technology from the FirePro workstations card and Radeon product lines.

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