Nvidia Corp. had the biggest share of the overall graphics accelerator market in the first quarter, beating Intel Corp. and ATI Technologies Inc., according to market research firm Mercury Research Inc.
For the sixth successive quarter, Nvidia claimed the top spot, increasing one percentage point to 31 per cent.
Intel maintained its second spot with 29 per cent while ATI grew one percentage point to 19 per cent.
Markham, Ont.-based ATI, which makes chips that handle graphics in desktop personal computers, laptops and video game consoles, is doing "significantly better" in its desktop PC business and Nvidia is performing better in its mobile business, said Dean McCarron, Mercury Research's president.
"Each company is doing better in their weaker segments," Mr. McCarron said.
The overall graphics market, which in the March quarter fell 5 per cent to 53 million units from 56 million in the December period, consists of four segments: desktop standalone, desktop integrated, portable standalone and portable integrated.
In the desktop standalone segment, where Nvidia dominates, the company lost one percentage point to 64 per cent while ATI gained two points to 28 per cent.
Joe Osha, an analyst at Merrill Lynch & Co., said in a report yesterday that since ATI has had an advantage with its newer graphics chips, "we were surprised to see that the company has not gained more share from Nvidia."
In the portable standalone segment, where ATI leads, its share grew four points to 60 per cent while Nvidia gained six points to 31 per cent.
About three years ago, ATI found itself being outdone by Nvidia, which was coming out with leading products at a faster rate, and ATI subsequently began losing market share.
However, ATI spent the better part of 2001 turning itself around. It made significant changes to its organization and altered its strategy to cope with a changing market to ensure that it can release products as fast as its rivals.
Both Nvidia and Intel are based in Santa Clara, Calif.
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