AGP or Accelerated Graphics Port succeeded PCI or Peripheral Component Interconnect as a technology to connect graphics cards to a computer's motherboard. PCI is still used to connect other devices like ethernet and sound cards.
AGP slots provide a dedicated link between the card and the CPU and thus providing faster communication between them. There are other enhancements as well. See the source for more. But the bottom line is that AGP cards perform much better.
But now AGP is getting phased in favor of PCIe or PCI Express which is even faster and can be used as the bus for all the devices in a machine.
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