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The modern graphics card provides better graphics through a combination of a better GPU (Graphics Processor Unit) and more memory than the on-board graphics chip which has to share main memory.

A more powerful graphics card will also be able to drive two, three or more monitors.

Modern graphics cards use the PCIe (PCI Express) slot on the motherboard. These have replaced cards that used the AGP (Accelerated Graphics Port) slot.

Video Card on Wikipedia

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