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NVIDIA and AMD’s Rivalry: Fierce Competitors with One Clear Winner

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According to the preliminary financial report released by Nvidia, the company lost over a billion dollars in revenue in its second-quarter earnings since last year. While AMD secured its business by over a billion dollars.

Nvidia reportedly earned $2.04 billion in revenue in the first half of 2022, down from $3.06 last year’s revenue. A whopping 33% loss was reported in Nvidia’s gaming business.

“Our gaming product sell-through projections declined significantly as the quarter progressed,” Jensen Huang, Founder, and CEO of Nvidia, said. “As we navigate these challenges, we remain focused on the once-in-a-generation opportunity to reinvent computing for the era of AI.” Jensen clearly blamed the global macroeconomic uncertainty and component shortages on this loss.

But for AMD, these factors didn’t seem to be an issue, as they continued to thrive in the gaming business generating $6.6 billion in revenue, with $1.7 billion of that coming from gaming only. After computer processors, gaming is now AMD’s second most significant profitable investment.

Lisa Su, CEO of AMD, in a report, said, “We delivered our eighth-straight quarter of record revenue based on our strong execution and expanded product portfolio,” she added “We see continued growth in the back half of the year highlighted by our next-generation 5nm product shipments.” In gaming unit shipments, AMD still has the edge over its competitor, thanks to the collaboration with Microsoft, Sony, and Asus. Moreover, the sales of PS5 and Xbox series gaming consoles increased by a noticeable rate last year, and both use AMD GPUs. Other gaming laptops also witnessed a rise in sales, with AMD’s Radeon GPU among the shipment of most popular units.

While Nvidia processors dominate the extremely high end of gaming power, it makes the GPUs fall in the category of high prices. Currently, one of the most powerful GPUs on the market is Nvidia RTX 3090 Ti costing nearly $2000. The price is eye-watering, of course. The company hasn’t said much about the unit being shipped, but revenue reports clear that it wasn’t enough. On the contrary, a survey showed that the old GeForce FTX 1060 is still positioned as the most common processor in gaming globally. This old graphic card cannot handle any high-intensity graphics but is still there to play games with low-intensity graphical needs. In a recent event, Nvidia revealed RTX 4090 will be available in October, costing $1599. 

NVIDIA Domination

Nvidia dominates AMD in the gaming laptop arena and still winning when it comes to performance. The latest steam hardware survey showed that approximately 75% of users on steam use Nvidia hardware, and AMD holds a second position under 15% of steam users.

Final Takeaway

No matter how powerful Nvidia’s processors are and the reasons behind Nvidia’s billion-dollar loss, the company’s poor pricing policies clear that AMD has a winning formula for continuous growth in the gaming business. Maybe it changes when pricing policies are revised, but it’s a tie for now.

Muhammad Tufail Sheikh
Tufail Sheikh leads Techywired's coverage of computing and gaming niche. He has been writing about best gaming laptops and PCs which is his passion right from the start of his career. He is a gaming geek from the early childhood and you can always find him playing video games in his favorite couch.

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