Nvidia holds a 90% unit market share in the graphics card market, with AMD trailing far behind at 10%. Despite this, Advanced Micro Devices (AMD) is working hard to close the gap. In recent years, Nvidia’s data center business has exploded due to booming demand for AI accelerators.
The company prioritized its pricey artificial intelligence accelerators over gaming graphics cards, resulting in supply issues and high retail prices. The launch of Nvidia’s RX 50 series graphics cards further highlighted this issue, with availability problems and quality control shortfalls leading to defective hardware and software driver bugs.
AMD is also focusing on AI accelerators but its forecast for AI sales this year fell short of expectations. Now, the company sees an opportunity to win over gamers with its RX 9000 series graphics cards. AMD will launch its RX 9070 and RX 9070 XT models later this week, priced at $549 and $599, respectively.
These new cards promise up to 40% higher gaming performance compared to last-generation graphics cards, thanks to improved ray tracing throughput and AI-powered features. Ray tracing has been an area where AMD struggled, but the company is now taking it seriously. The RX 9000 series also includes a new version of FidelityFX Super Resolution, which uses machine learning to upscale images while reducing visual artifacts.
AMD’s mid-range offerings have historically been more competitive than Nvidia’s, and with the right strategy, the company can target lower price points and win over gamers. The current AI boom has forced Nvidia to prioritize its data center business, leaving room for AMD to swoop in and provide an alternative.
Source: https://www.fool.com/investing/2025/03/04/amd-has-a-golden-opportunity-in-the-graphics-card