Nvidia has managed to regain some ground in the discrete mobile GPU market, according to the latest Mercury Research report.

In the desktop space, Nvidia dropped from a 61 percent share to 59.4 in the last quarter, while AMD managed to seize the 1.6 percent for a 40.6 percent share in Q1. A year ago Nvidia controlled 35 percent of the market, with the remaining 65 percent going to AMD.

The trend in notebook discrete graphics is a bit more positive, as Nvidia managed to increase its share from 38 percent to 42 percent sequentially. However, year-on-year Nvidia is still down, as it had a 50 percent share back in Q1 2010.

In combined desktop and notebook shipments, Nvidia still holds 51 percent of the market, with 49 percent going to AMD with next to no change over the past two quarters.

However, it is worth noting that Nvidia’s overall GPU market share has seen a drop thanks to the advent of Intel and AMD graphics enabled processors.