AMD's profit might drop in Q3 due to competition

Digitimes reports that despite achieving an 8% sequential and 87% on-year revenue growth in its graphics business in the second quarter, AMD's profits from the segment in the third quarter may drop as competition from Nvidia heating up, according to sources from graphics card players.

For the third quarter, Nvidia has recently launched its GeForce GTX 460 GPU and is set to launch GeForce GTS 455 and 450 GPUs in August and an entry-level GF100-based GPU in September, according to previous reports.

Although AMD is already preparing next-generation DirectX 11 products, since details are unlikely to be fully planned out until October, and AMD currently does not have plans for new product launches in the third quarter, the company is likely to offer price cuts to compete against Nvidia's new products, which should reduce its profits, the sources noted.