A graphics component shipment report by Jon Peddie Research has shown that Intel and AMD both gained market share at Nvidia's expense.
AMD experienced a 13.3 per cent growth in graphics chip volumes between Q4 and Q1 this year and Intel likewise sold 14.2 per cent more graphics chips this quarter but Nvidia continued a recent trend, falling slightly 1.7 per cent.
Nvidia's unit volume year-on-year was substantially down by 28.4 per cent according to the JPR Market research report. Much of the shift is down to stronger on-CPU integrated graphics solutions from both Intel and AMD.
Interestingly JPR was taken by surprise by the 10.3 per cent overall growth in graphics shipments while PC shipments fell by 5 per cent.
The firm pointed out that the average number of GPUs in PC systems has risen from 1.15 to nearly 1.45, indicative of the number of systems which are shipping with integrated and discreet graphics solutions.
The next generation of AMD and Intel processors with integrated graphics are expected to offer even greater graphics performance which looks set to squeeze the discreet graphics market yet further.
JPR was also of the view that the Apple iPad cannibalized some of the netbook market from the PC sector.