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| How NVIDIA continues to lead the graphics card market |
Nvidia continues to dominate the graphics card market even though the market suffered last year.
AMD is its main competitor in this market. Despite their best efforts, it is better value for money. However, the differences between the two companies are huge.
NVIDIA's GPU market share increased by 3% between Q2 2020 and Q2 2021. AMD lost the same market share over the same period. In theory, that means they took it from AMD.
This green giant occupies 83% of the discrete graphics card market. AMD only 17%. For the graphics processor market in general, Intel alone controls 68% because every Intel processor has an integrated graphics card.
Overall, sales in the graphics card market increased by 3.4% compared to the previous year.
NVIDIA and the graphics market
AMD has been very successful over the past few years. As different from Nvidia, it also deals with the manufacture and development of graphics units and CPUs.
The Ryzen CPU platform outperforms Intel in more ways than one. As it has better performance and adopts 7nm manufacturing precision, it offers better cost efficiency.
However, AMD's technical leader does not guarantee success in the graphics card market. This clearly indicates a low market share.
NVIDIA graphics cards use DLSS technology to improve gaming performance using artificial intelligence and the RTX card's tensor core.
AMD is trying to provide competitive FSR technology. Compared to competing DLSS technology, this technology has proven to be weak and has poor performance.
Perhaps the biggest advantage of DLSS technology is its reliance on artificial intelligence, which is an area in which Nvidia is generally quite good. I have been able to train the DLSS AI model for many years. AMD's competing technology is based on relatively old algorithms.
Since NVIDIA has a strong grip in this area, it can convince game developers to support its technology like DLSS as quickly as possible. This is due to the huge differences in market share.
In addition, users have also experienced a severe shortage of graphics cards in the past few months. This is due on the one hand to the Covid-19 pandemic and on the other hand to the demand for cards from minors.
This motivates users to switch to laptops rather than bundle computers. This is where NVIDIA's powerful controls come into play, as most gaming laptops are already equipped with NVIDIA graphics cards.