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NVIDIA: AMD/ATI merger will make us stronger

by Steve Kerrison on 24 July 2006, 14:24

Tags: AMD (NYSE:AMD), ATi Technologies (NYSE:AMD), NVIDIA (NASDAQ:NVDA)

Quick Link: HEXUS.net/qagdx

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We predicted trouble ahead for NVIDIA in our analysis of the AMD/ATI merger, but unsurprisingly, they're rather upbeat, if a little on the back foot, about the whole thing.

With Intel neglecting to renew ATI's bus license for core-logic solutions (hmmm, wonder why?) that leaves NVIDIA as the only disrete GPU and core logic manufacturer that'll produce products for both Intel and AMD systems. So, while ATI's GPUs will, of course still work on Intel systems, it doesn't look like we're going to see any new mainboard chipsets developed. GeForce and nForce I.E. will continue.

NVIDIA has also said that AMD still needs them. So, don't expect NVIDIA to stop producing technology to rival whatever the new AMD/ATI combo comes up with. Further, NVIDIA becomes 'Intel's best GPU partner', so they say.

All in all it's a tough one for NVIDIA. Their products, both GPU and core-logic, are very popular in conjunction with AMD CPUs, so they can't go abandoning their support for AMD. However, they will make this an opportunity to work closer with Intel, and the 'distracting, complex merger' will make them 'more competitive than ever' against ATI.

All in all, we get a feeling that right now their response is somewhat defensive, but we do wonder what opportunities NVIDIA may be presented with as AMD and ATI sort out the merger. Let's hope we're not left with a choice of AMD & ATI or Intel & NVIDIA...



HEXUS Forums :: 9 Comments

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What were the chances of nvidia saying “omg this is terrible help us” in a press release :P

But seriously nvidia is the biggest gainer from all this. They have elimated a big chunk of competition from one market while losing nothing another.
“However, they will make this an opportunity to work closer with Intel, and the ‘distracting, complex merger’ will make them ‘more competitive than ever’ against ATI.”

But will Intel want to work with someone else closely? Not exactly the kind of company you want to get into bed with based on the past..
Whatever happens, I can see NVIDIA having to have a bit of a rethink about they tackle things now. The market just changed appearance, so they'll have to adjust to fit in with that.

Still, I don't see AMD as having screwed NVIDIA over. It's going to create a few difficulties for NVIDIA, sure, but I reckon they'll get by.
Their products, both GPU and core-logic, are very popular in conjunction with AMD CPUs, so they can't go abandoning their support for AMD.
Exactly. This combo has been one of the best the last few years, and it wouldn't be healthy for AMD to screw such relationship with nVidia.
I fail to see the benefits of AMD buying ATi… They are very unlikely to gear products to work with a rival CPU producer, so limit the market - especially if nVidia keep producing products that work with AMD boards and CPU's!

I personally prefer nVidia GPU's to Ati anyway. This is based on the experience that nVidia have been far more reliable for me than the brief (due to failure) liason I had with a 9800 Pro.

Matt.