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AMD, Intel Biggest Winners In Hot GPU Market

For desktop GPUs, Intel increased its first-place position in the third quarter to a 43.9% share, while Nvidia slipped to 32.6% and AMD climbed to 20.3%, one market researcher found.
The global economy is slowing, but the market for graphics processors is going strong with the largest vendors Intel and Advanced Micro Devices increasing market share, a market researcher said Monday.

In the third quarter, more than 111 million graphics processing units, or GPUs, were shipped, an increase of 22.5% over the 91 million shipments in the same period a year ago, John Peddie Research reported. Compared to the 94 million units shipped in the previous quarter, shipments increased nearly 18%, the largest quarter-to-quarter growth rate in six years.

GPUs were used in more than a third of all PCs shipped in the third quarter. Graphics processors are also used in industrial and medical systems, point of sale terminals, kiosks and digital signs.

Advanced Micro Devices and Intel were the biggest winners with year-to-year growth of 22.8% and 81.4%, respectively. Nvidia saw its number of shipments decline by 6.4%. The biggest losers were small vendors Matrox, SiS and VIA/S3, which saw drops of 16.7%, 35.7% and 84.6%, respectively.

For desktop GPUs, Intel increased its first-place position in the third quarter to a 43.9% share, while Nvidia slipped to 32.6% and AMD climbed to 20.3%, the research firm said. Shipments of desktop GPUs overall rose by 4.7% to 61.9 million units.

In the notebook market, Intel shipments fell a point quarter-to-quarter to a 56.2% share, while Nvidia's share dropped nearly two points to 21.8% and AMD's jumped three points to 20.9%. Notebook GPUs overall soared by almost 40% quarter-to-quarter to 49.4 million units to claim 44.4% of the market.

The third quarter is seasonally up as PC makers place orders for products aimed at the holiday season. "However, this quarter was up more than any other for some time and in spite of suggestions of a recession that started last Q4 (fourth quarter 2007)," Jon Peddie, president of the research firm, said in a statement.

Despite the strong third quarter, the global recession is having an effect on business and consumer spending, so the fourth quarter, which is usually the "crescendo of the year," could be flat in comparison to the previous quarter, Peddie said.