Advanced Micro Devices (NASDAQ: AMD) was hot on the heels of NVIDIA (NASDAQ: NVDA) in the graphics card market in recent years, prompting the market leaders to race for money. But now AMD is finally able to have enough ammo needed to blow a hole in NVIDIA’s GPU trench (graphics processing unit) thanks to its newly released RX 6000 series graphics cards.
NVIDIA’s new headache
NVIDIA recently released its latest graphics card, which is based on the new Ampere architecture and delivers high performance without sacrificing price over its predecessors. But AMD seems ready to give NVIDIA sleepless nights with a new series of graphics cards based on the RDNA2 architecture, which promise double performance and a 54% increase in performance per watt. energy) compared with previous generation RDNA cards.
AMD is currently targeting the high-end GPU market, which has been NVIDIA’s territory so far. Priced at $ 999, AMD’s flagship Radeon RX 6900 XT closely resembles NVIDIA’s flagship product – the RTX 3090 – in terms of performance, by AMD’s internal standards. For example, the RX 6900 XT hit 150.1 fps on average when running in popularity Doom Eternal the title is at its highest setting at 4K resolution, compared to 151.6 fps on the RTX 3090.
But the RTX 3090 has a much higher starting price of $ 1,499, so AMD is claiming to offer gamers much better value for money. The RTX 3080 founders’ version card and AMD Radeon 6800 XT graphics card also closely match performance when running the same game at 4K resolution. However, the RX 6800 XT is cheaper at $ 649, compared to the RTX 3080’s starting sticker price of $ 699.
Meanwhile, AMD claims that their new graphics cards are better than NVIDIA when running Doom Eternal at quad high resolution (QHD) at highest setting. AMD did in-house testing on some games, such as Call of Duty: Modern Warfare, Shadow of the Tomb Raiderand Forza Horizon 4, among others – and it claims to offer better service by NVIDIA or closely match them in terms of performance depending on settings.
Of course, it would be a good idea, as they are conducted by AMD’s in-house laboratories and not by a trusted third party. But they do indicate that AMD may have stepped up its game in the GPU market with new cards, paving the way for a potential increase in their market share.
AMD could be about to level up
AMD achieved an impressive increase in the GPU space in the first quarter of 2020, when their market share reached nearly 31%, compared with 22.7% in the period a year ago (the rest held by NVIDIA , according to Jon Peddie Research). But NVIDIA made a solid comeback in the second quarter of the year when AMD’s market share dropped to 22% from nearly a third of the market a year ago.
NVIDIA’s return was fueled by the company’s pricing prowess. It reduced the price of its older GPUs in preparation for the launch of new Ampere cards, helping the company gain more customers in the second quarter. Additionally, the launch of RTX 30 series cards at a premium price means customers will buy them manually in the third quarter.
The GPU market share figure for the third quarter has yet to be announced, but NVIDIA may have shipped more units than AMD during that period considering the out-of-stock rate for RTX 30 series cards. Now that AMD claims to have narrowed the performance gap with NVIDIA and is offering its latest cards at a lower price than the competition, it can regain momentum and cut its GPU lead. in the coming quarters.
This will further increase the returns AMD is seeing in other sectors and help the chipmaker remain the top stock for growth investors.