Graphics Cards used by Gamers and Professionals is nVidia’s most valuable business

nVidia makes most of its money by selling video graphics cards used in PCs.  The company sells the majority of its products directly to PC makers such as Dell, Toshiba and HP which integrate them into their PC offerings.  Despite this, nVidia’s most lucrative business is selling high-performance graphics cards to professionals and gaming enthusiasts through retailers such as Best Buy, Newegg and TigerDirect.  We estimate that Pro Graphics Cards constitutes 39% of the $11.01 per share Trefis price for nVidia.

nVidia’s share within the professional graphics market has increased from 70% in 2005 to 87% in 2008 due to a shift in demand to even higher-end graphics cards where nVidia has a strong product offering.  We forecast that nVidia’s Pro Graphics Cards Market Share will decline slightly from a peak of 87% in 2008 to 83% by the end of the Trefis forecast period as its primary competitor AMD has recently increased focus and investments on the higher-end graphics segment.

Within nVidia’s content on our platform, you can see how the company’s stock price would be impacted if nVidia’s Pro Graphics Cards Market Share were to return to 2005 levels.