Things are not looking too good for AMD on the graphics front, as the company continued to lose ground against rival Nvidia during the second quarter of the year.

According to a report released by Jon Peddie Research (JPR) today, Q2 saw Nvidia make significant gains, while AMD and Intel saw more typical results. On the desktop side, Nvidia was the clear winner with 43% market share against Intel's 38.5%, while AMD had a modest gain to 23%. Intel still owns the mobile graphics market, however, selling 51.5% of the 24.5 million units sold, with Nvidia and AMD at 27% and 21%, respectively.

Overall, AMD's slice of the market has dropped to 19.5% — down from 21.9% in Q1. Meanwhile, Nvidia's overall PC graphics market share went up 28.5% to 32.6%. Intel lost about a point, slipping from 38.7% to 37.6%, good enough to remain the frontrunner of the pack, and is likely to stay atop if it continues to dominate the growing mobile market by such large margins.

JPR said 81.32 million graphics chips were sold during the quarter, up 3% from Q1 and up more than 8% from Q2 2006.