According to Digitimes AMD is losing market share to Nvidia in the discrete GPU market while falling further behind Intel in the PC processor field. AMD is likely to suffer from a record low share of both markets in the first quarter of 2016.

It was always going to be a pants year for everyone. Demand for standalone graphics cards is sluggish and the market for standalone grahics cards continues to decline. But as the market shrinks it would appear that Nvidia is dining off AMD at the same time. AMD's discrete GPU market share has also been hurt by falling shipments of its own PC processors.

What is a bigger worry is that the in the PC processor market, AMD's gap behind Intel has widened to the point that it might have difficulty clawing anything back from Intel by the time Zen architecture can help the company make a comeback.

The Zen processor architecture will be introduced in high-end desktops like gaming PCs and servers, and the first Zen products are unlikely to arrive until the fourth quarter of 2016. Zen probably will not help AMD regain its PC share.

In GPUs AMD will have its work cut out to ensure that the launch of its Polaris architecture will be on schedule. Any delays of the launch or performance issues could interrupt its way to recovery. AMD expects shipments of Polaris architecture-based GPUs to begin in mid-2016. AMD reportedly will use the 14nm LPP process from Samsung/Globalfoundries for its upcoming Zen CPUs and Polaris GPUs.