Advanced Micro Devices (NYSE:
AMD) expects its revenue to
drop by 11 percent. Could this decline be the opportunity NVIDIA (NASDAQ:
NVDA) has been seeking?
Over the past decade, NVIDIA has battled Advanced Micro Devices for the crown of graphic processing. From game consoles to tablets and other devices, the two companies account for
almost 100 percentAAPLMSFT) announced that it would use NVIDIA's Tegra 3 processor for its upcoming tablet, Surface. As the first major hardware release from Microsoft since Xbox 360 and Zune, (the latter of which flopped), Surface is expected to make waves within the tech industry. The highly anticipated tablet is seen as a potential threat to Apple's domain, as its Windows 8 operating system could allow business users to perform more tasks than the iPad.
Google (NASDAQ:
GOOG) dealt another blow to Advanced Micro Devices when it announced that it would also use the Tegra 3 for its tablet, the seven-inch Nexus 7. Priced at $199, the Nexus 7 is expected to cut into the small, yet lucrative market for seven-inch tablets. That market is currently dominated by Samsung and Amazon (NASDAQ:
AMZN), with Amazon rumored to add NVIDIA processors to its next-gen tablet. Samsung's tablets already include NVIDIA technology.
With Advanced Micro Devices' expected decline, investors have been given a glimpse into the future of the processor market. While NVIDIA's shares have been climbing slowly, (albeit, with a few dips in between), Advanced Micro Devices has dropped roughly 40 percent in the last three months.
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