Will AMD's Decline Create an Opportunity for NVIDIA?

Advanced Micro Devices

expects its revenue to

. Could this decline be the opportunity NVIDIA

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

of the graphics processor unit (GPU) market. Both firms specialize in bringing graphic acceleration to PC users, allowing graphic designers, video editors and other professionals to power their most graphic-intensive programs. Consumers also benefit from Advanced Micro Devices and NVIDIA's graphic accelerators, as they enable Macs and PCs to play HD video and high-end video games. NVIDIA has recently gained a significant edge over Advanced Micro Devices by securing multiple deals with Apple

. While the company's products do not power any of Apple's current iDevices, the Mac maker proudly touted its use of NVIDIA chips when unveiling the next-gen MacBook Pro. NVIDIA graphics can also be found within the standard (revised) MacBook Pros. However, Advanced Micro Devices' chips remain within the aging Mac Pro, as well as the recently upgraded iMac and Mac Mini. Advanced Micro Devices recently lost a major opportunity to excel when Microsoft

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

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

, 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.