But its first effort, although powerful, drinks a lot of juice and therefore shouldn't prove a great threat. That's good for ATI, because the laptop market has more growth potential than the desktop. But the latter is still too big to ignore. Given Nvidia's dominance of the high-end, ATI has to try to compete in the middle and low ends, where price is more important. ATI is planning to start producing them this year.
New products mean more risk.
Given the slimmer margins, there isn't much room for error. And Nvidia is also said to be planning a foray into integrated chipsets. Even if ATI manages only to stabilize its market share, a rebound in PC sales should provide investors with a return. Assuming the company executes well, it may be able to increase its market share. That would require Nvidia to slip.