X-bit Labs received numbers from a Mercury Research study regarding current market share situation of the graphics chip market. If the numbers that X-bit Labs has received from its source are correct then ATI will have surpassed NVIDIA in terms of market share for the first time in about five years:
According to the data, Intel Corp.’s market share in the graphics systems market rose 1% to 39% in the Q3 2004. ATI Technologies’ market share skyrocketed 4% to 27% in the Q3 2004, while its arch-rival’s – NVIDIA Corp.’s – share dropped 8% to 15% from 23% in the third quarter of the year. Intel supplies chipsets that contain integrated graphics cores for mobile and desktop computers, while ATI and NVIDIA concentrate on standalone graphics chips for desktops and laptops.
For the first time for a long time Markham, Ontario-based ATI Technologies managed to leave NVIDIA behind in terms of market share in desktop standalone market segment. Currently ATI commands 55% of the market, up 17% from the previous quarter. NVIDIA supplied 42% of graphics chips for desktops during the Q3 2004, down 16% from the previous quarter.
ATI Technologies also took the lead over NVIDIA in the market of standalone graphics components, which includes both mobile and desktop graphics processing units. The firm supplied 59% of all graphics chips, while Santa Clara, California-based NVIDIA commanded 37% of the market, down 13% from the Q2 2004.