gpu shipments rise as nvidia loses market share to rivals
Santa Clara, Wednesday, 4 December 2024.
NVIDIA is facing a decline in market share despite an increase in overall GPU shipments. This shift is due to rising competition and the anticipation of new products from competitors such as AMD. Recent data shows an overall growth in the GPU sector, with integrated GPU sales increasing. However, standalone GPU shipments have decreased as both AMD and NVIDIA prepare to launch new products. Market dynamics have shifted, with Intel holding the largest share at 65%, followed by NVIDIA at 18% and AMD at 17%. NVIDIA’s market share fell by 1.9%, while AMD and Intel saw slight increases. The decline in standalone GPU sales, particularly in desktops and laptops, has contributed to this shift as consumers await next-generation products. This trend might temporarily influence NVIDIA’s stock valuation.
Market dynamics shift in gpu sector
Recent data from Jon Peddie Research reveals significant changes in the GPU market landscape. The third quarter saw overall GPU shipments reach 73.6 million units, marking a 3.4 percent quarter-over-quarter increase [1]. The market structure shows Intel dominating with 65% share, while NVIDIA holds 18% and AMD claims 17%. Notably, NVIDIA experienced a 1.9% decline in market share, while AMD and Intel gained 0.8% and 1.1% respectively [1].
Standalone gpu sales decline
The discrete GPU segment has shown particular weakness, with total shipments of standalone graphics processors for desktop and laptop computers falling to 7.1 million units [1]. This decline appears linked to the product cycle timing, as both AMD and NVIDIA prepare to launch their next-generation products. The Radeon RX 8000 and GeForce RTX 50 series are anticipated, causing potential buyers to delay purchases [1].
Future market concerns
Industry expert Dr. Jon Peddie warns of potential market headwinds. Despite current growth in overall GPU shipments, concerns about proposed tariffs could impact the PC market negatively. These economic factors might lead to price increases and mismatched revenue growth [1]. AMD’s competitive position has strengthened, with their Ryzen 7 7800X3D recognized as the leading gaming CPU, outperforming Intel’s offerings at a lower cost [3].