Even AMD is surprised by how fast it’s gaining on Nvidia

Even AMD is surprised by how fast it’s gaining on Nvidia

  • 17.03.2025 12:41
  • msn.com
  • Keywords: AMD, Nvidia

AMD's RX 9000 series has unexpectedly surged in popularity, with its market share reaching 45% in Japan—a success even AMD found surprising. Despite strong demand, supply constraints are limiting production, and rising prices may curb future gains as GPUs restock.

Nvidia NewsCPTsentiment_satisfiedNVDAsentiment_dissatisfied
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Estimated market influence

AMD

AMD

Positivesentiment_satisfied
Analyst rating: Buy

AMD's RX 9000 series has achieved significant success, with a 45% market share in Japan and high demand globally.

Nvidia

Nvidia

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Nvidia is facing competition from AMD; their RTX 50-series GPUs are sold out at U.S. retailers.

Context

Analysis of AMD's Market Gains Against Nvidia

Overview

  • AMD's surprising success: AMD has experienced rapid growth in GPU market share, particularly in Japan, where it reached 45%. This growth has even surprised AMD itself.
  • Global implications: While global market share is typically between 10%-18%, the success of its RX 9000 series suggests potential gains worldwide.

Key Facts and Data Points

  • Market Share in Japan:
    • AMD achieved a 45% GPU market share in Japan, marking a significant milestone.
  • Global Market Share:
    • Historically, AMD holds between 10%-18% of the global GPU market, with Nvidia dominating the majority.
  • GPU Sales and Demand:
    • AMD’s RX 9070 GPUs are selling out quickly in the U.S., indicating strong consumer demand.
  • Supply Chain Challenges:
    • AMD’s add-in board partners (AIBs) reported being unable to meet demand due to GPU shortages, despite AMD delivering more stock than Nvidia during the RTX 50-series launch.

Competitive Dynamics and Strategic Considerations

  • Nvidia's Position:
    • While AMD gains traction, Nvidia remains the market leader. The article highlights the competitive nature of the GPU market, with both companies vying for dominance.
  • Performance-per-Dollar Argument:
    • AMD’s success has been driven by its ability to offer high performance at a lower price point compared to Nvidia. However, this could be at risk if GPUs become more expensive when restocked.

Long-Term Effects and Market Implications

  • Potential for Market Share Growth:
    • The article suggests that AMD’s gains in Japan could signal broader global opportunities, though challenges remain in scaling production to meet demand.
  • Regulatory and Industry Impact:
    • No direct mention of regulatory impacts, but the competitive dynamics could influence future market strategies and pricing.

Strategic Considerations for AMD

  • Supply Chain Management:
    • AMD must work closely with its AIB partners to ensure sufficient GPU availability to sustain its momentum.
  • Pricing Strategy:
    • Maintaining affordability will be crucial to retaining the performance-per-dollar edge over Nvidia.

This analysis highlights AMD’s rapid gains, the challenges it faces in scaling production, and the broader implications for the GPU market landscape.