SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?


To: rzborusa who wrote (274592)1/19/2016 11:54:03 AM
From: Mahmoud MohammedRead Replies (1) | Respond to of 275872
 
Don't Sell Yourself Short ... Nvidia Snags AMD’s Share in the Gaming Market

"... Market share
According to Mercury Research, AMD started losing its share to Nvidia in the discrete desktop GPU (graphic processing unit) market from the second half of 2014. As can be seen from the above graph, Nvidia ate up AMD’s market share, with Nvidia holding a 76.4% share against AMD’s 23.6% share.

However, AMD started bracing to acquire its lost share in the GPU market. In 2015, Nvidia released four new GPUs, while AMD released three—the Radeon R9 Fury X, Fury, and Nano. According to Jon Peddie Research, the 3Q15 saw a reversal in the market, with AMD’s share in the discrete GPU market rising to 18.8% from 18.0% in 2Q15, while Nvidia’s share fell to 81.1% from 81.9% in 2Q15.

Cause for gap in market share
AMD and Nvidia have been competitive and whenever AMD sees its chips are losing value, it implements price cuts. Despite this, AMD started losing market share to Nvidia due to two reasons—efficiency and features.

Efficiency: As Nvidia focuses purely on GPU, it has been quick to implement new architecture updates, making its chips faster and more efficient. AMD’s resources were divided between CPU (central processing unit) and GPU, making its upgrade slower than Nvidia.

Features: Nvidia has been consistent in adding new features such as GeForce Experience, ShadowPlay game recording, and G-Sync. AMD is catching up by introducing features such as FreeSync and its game bundling program, Never Settle.

Earlier in 2015, Nvidia partnered with Samsung (SSNLF) to build GPUs on the 14nm FinFET (fin-shaped field effect transistor). AMD followed by partnering with Samsung in December 2015 for a 14nm FinFET.

Financial position
Another major challenge that has been preventing AMD (with $5.5 billion in revenue in 2014) to pose tough competition to Nvidia (with $4.7 billion in revenue in 2014) is its financial position. AMD has high debt and low cash as compared to Nvidia. Limited cash makes it difficult for AMD to invest a sufficient amount in research and development."


finance.yahoo.com

Mahmoud