What happened
Shares of Nvidia (NVDA +1.63%) and Advanced Micro Devices (AMD +1.65%) climbed on Monday following the release of preliminary results from International Data Corporation's Worldwide Quarterly Personal Computing Device Tracker.
By the close of trading, Nvidia and AMD were up 2.6% and 2.8%, respectively, after rising as much as 5.2% and 4.9% earlier in the day.
So what
Global PC shipments jumped 26.1% year over year to 91.6 million units, according to IDC. The gains were fueled in part by more people working from home during the COVID-19 crisis.
PC sales are soaring during the coronavirus pandemic. Image source: Getty Images.
Yet IDC notes that demand for gaming systems also contributed to the strong growth in PC shipments. "The obvious drivers for last year's growth centered around work-from-home and remote-learning needs, but the strength of the consumer market should not be overlooked," IDC Program Vice President Ryan Reith said in a press release. "We continue to see gaming PCs and monitor sales at all-time highs."
Now what
Strong PC sales suggest solid demand for AMD's and Nvidia's chips. AMD is taking share from semiconductor giant Intel, which is struggling with costly production delays. Nvidia, meanwhile, holds a commanding share of the graphic chip market, which is being boosted by rising demand for gaming systems.
Judging by IDC's report, both of these chip leaders are likely to report impressive financial results in the quarters ahead.
