AMD’s CPU division has been having a stellar time ever since the Ryzen CPUs were introduced, but the story on the Radeon side is far from ideal. According to statistics from Mercury Research, the average sales price of graphics cards rose by as much as 10% in the first quarter of 2021 compared to Q4 2020, but sales only grew by 1%. Generally, this season is known for declining sales, for example, the previous year’s shipments dropped by 11% in Q1.
A report from BMO states that the graphics card market share of NVIDIA by the end of Q1 was pegged at 81%, 5.2% higher than the same period last year. AMD, on the other hand, saw a notable drop from 24% in Q1 2020 to 19% at the end of FY2021. Quarter over quarter shares were more or less static.
NVIDIA, during its Investor Presentation (June 2021) boldly claimed that its revenue in the GPU market is 3x more than its nearest rival (AMD) which quite frankly isn’t hard to believe. Radeon products have been selling at very low-profit margins and with Navi 2x, the shipment volumes (till now) have been very limited. Most of the GPU revenue for the company comes from its semi-custom division that manufactures the Xbox Series X|S and PS5 consoles. AMD’s combined CPU and GPU revenue (CG) is a bit higher than NVIDIA’s gaming revenue though, coming in at $6,432 million for FY2020 while the latter reported gaming revenue of $5,518. For FY2021, the two are expected to be very close: ~$7-8 million.
Quarter-over-quarter, the gaming segment has shown tremendous growth over the last few quarters, growing from$1.65 billion in Q2 2020 to $2.49 billion in the first quarter of 2021. Despite the limited supply, Ampere has ramped up much faster than Turing, gaining 2x share among Steam gamers.
The RTX 30 laptop launch is also the largest in the company’s history, with 70+ SKUs in design. GeForce Now now has over 6 million members a rather considerable library of 800 PC games, higher than any other cloud gaming platform.
The situation is similar on Steam, with not a single AMD Navi GPU in the top 10 bestselling GPUs or the top shareholders. The RX 580 is the most widely used Radeon GPU amongst Steam players while the integrated Vega 8 graphics was the most adopted AMD graphics solution in May.