SOURCE: The Bedford Report

The Bedford Report

November 18, 2010 11:25 ET

Competition Heats Up in Graphics Chip Market

The Bedford Report Provides Analyst Research on Nvidia & AMD

NEW YORK, NY--(Marketwire - November 18, 2010) - It has been a mixed bag this year for chipmakers. While the smartphone and tablet trends have given certain key industry players many new sources of revenue, we are seeing somewhat of a double edged sword as the tablet craze is having a negative effect on PC sales. As a result, semiconductor companies whose niches are focussed on PCs are already seeing their ratings slashed by analysts and are beginning to report less-than impressive earnings. Even companies with products that assist smartphones and tablets have to be careful. With the rush to manufacture more products faster, quality has at times been compromised, and reputations have been tainted. The Bedford Report examines the outlook for companies in the Semiconductor Industry and provides research reports on Nvidia Corporation (NASDAQ: NVDA) and Advanced Micro Devices, Inc. (NYSE: AMD). Access to the full company reports can be found at:

www.bedfordreport.com/2010-11-NVDA

www.bedfordreport.com/2010-11-AMD

Analysts had been forecasting negative long term effects of the iPad and other tablet computers on the PC industry. According to market research firms Gartner and IDC's estimates, worldwide PC shipments grew 7.6 percent during the most recent quarter, well below its anticipated projection of 12.7 percent.

AMD's CEO Dirk Meyer said during the company's third quarter earnings call that the tablet "represented a disruption" -- particularly for the laptop business.

The Bedford Report releases regular market updates on the Semiconductor Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

The market for graphics processors is hurting due to a slowdown in Laptop sales. According to the analyst firm Jon Peddie Research, graphics product shipments were down 1 percent sequentially in the third quarter.

AMD and Nvidia are heated competitors in the graphics chip market and both companies have exciting new products due out next year. Nvidia's chief executive Jen-Hsun Huang recently unveiled the company's new graphics processor, known as Kepler, which Huang says is three to four times faster than Nvidia's current Fermi chip generation. AMD recently said that it plans to launch its Fusion family of accelerated processing units in the first half of 2011.

According to Jon Peddie Research, Nvidia is losing graphics product market share to rivals Intel and AMD. For the third quarter, Nvidia held a 21.2 percent market share in graphics processors, a drop from its 25.3 percent last year while Intel raised its market share to 55.6 percent, and AMD took over the number two spot with a 22.3 percent market share.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.bedfordreport.com/disclaimer

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