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A recent report has shown that although Nividia is still the largest high end graphics processor manufacturer and developer in the world, its closest rival AMD is fast playing catch up.

According to a report filed by Jon Peddie research, the industry’s research and consulting firm for graphics and multimedia, Nvidia held 24.3% of the total global GPU market share in the fourth financial quarter – down from 25.3% in the third. AMD however barely showed any movement, sliding down from 20.1% to 19.9% in the same period.

Year on year Nvidia dropped considerably from 30.6% of total market share in 2008. AMD however grew from 19.3%. This can be attributed to the fact that Nvidia is yet to release its range of DirectX 11 supporting GPUs – codenamed Fermi. Currently AMD is the only manufacturer to have released DirectX 11 compatible graphics processors, as represented by the HD 5000 series.

Upon its release in April the Fermi architecture will feature a 40 nanometer manufacturing process – the smallest die used so far in graphical processors.

As mentioned in MyGaming’s recent GPU pricing comparison Nvidia is currently being criticised for delivering its DirectX 11 compatible range much later than AMD, who introduced the HD 5870 in September. This time difference has given AMD the opportunity to release more affordable units for the mid to lower end of the market, allowing the manufacturer to capture a significant portion of Nvidia’s market share.

The biggest winner in the overall rankings was Intel – which climbed from 53.6% to 55.2%. Some analysts have suggested that this could due to strong Atom sales, which feature an integrated graphics solution.

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