Here's How NVIDIA Turned the Tables on AMDNVDA) has been dominating the graphics card space and has outwitted its rival Advanced Micro Devices (AMD) multiple times consecutively in the recent past. However, things were a bit different a few years ago.
Back in 2011, Advanced Micro Devices was the frontrunner in the GPU market. NVIDIA was playing second fiddle and was continuously losing market share to Advanced Micro Devices, and its efforts to regain market share via price cuts hurt margins. Later, NVIDIA shifted its focus towards the mobile baseband chips market by acquiring Icera, but even that didn’t work, as the company’s shares reached their lowest point of about $12 that year.
However, situations have entirely changed since then.
As compared to NVIDIA, Advanced Micro Devices does not have plenty of cash to invest in R&D to improve its graphics cards, as it faces huge competition from NVIDIA in GPUs and Intel in CPUs. Therefore, Advanced Micro Devices enhanced its clock speeds, which upgraded horsepower but decreased power efficiency. Due to this, it lost almost every battle against NVIDIA, and is highly likely that its recently launched Polaris architecture will underperform as compared to NVIDIA’s Pascal architecture.
NVIDIA recently launched two graphics cards GTX 1080 and GTX 1070 based on Pascal architecture. As per review from TechPowerUp, the GTX 1070 graphics card deliver precisely what the company claimed during its launch. The initial demand for GTX 1070 seems to be outperforming supply. Keeping in mind the company’s hard efforts to massively improve performance of GTX 1070 compared to its predecessor, it was obvious that NVIDIA’s GTX 1070 demand would be solid.
Apart from these, the company recently proclaimed a Shield TV software update that basically permits the Shield to behave as a standalone Plex server. This is a great deal for prevailing Plex users, but possibly more substantial for Shield owners who will now have the power of Plex at their disposal.
All in all, NVIDIA has come a long way from being an underperformer a few years ago to having a dominating presence in multiple profitable markets. Investing in R&D was the key to NVIDIA’s revival and it is what will keep the company going in the long-run. Advanced Micro Devices, on the other hand, has a terrible balance sheet and will likely never reach the zenith again.
Published on Jun 16, 2016By Akshansh Gandhi