What is going on ? Graphics card sales are falling like never before!

-15% over one quarter, -38% over one year: the market for Graphic card continues its plunge.

The end of the graphics card shortage has obviously not solved all the problems for the major graphics chip vendors. Indeed, GPUs are suffering a more than significant drop in sales.

Biggest drop in 11 years

A report published by the Jon Peddie Research Institute makes it possible to quantify more exactly what the publication of the financial results of AMD, Intel or NVIDIA had already largely outlined.

First lesson, the GPU market reached 64.2 million units worldwide for the fourth quarter of 2022. If the figure is impressive, it nevertheless marks a significant drop in shipments. We are talking about -15.3% compared to the previous quarter and, more importantly, -38% year-on-year.

This fall does not spare any sector of the graphics card, since products for desktop computers are down 24%, while the world of laptops falls for its part by 43%. This is also the largest drop in 11 years.

NVIDIA reinforces its dominance

The three main GPU players are affected by this market collapse, but to different degrees. Thus, Intel is the most affected company, with a 16.5% drop in shipments compared to the third quarter of 2022.

For its part, AMD recorded a decline of 12.7%, and NVIDIA is the one that is doing the best, even if its drop is still 11.7%. It should also be noted that compared to the fourth quarter of 2021, the chameleon firm is taking the opportunity to strengthen its dominance in the dedicated card sector: its market share has increased from 78 to 82%.

In order not to announce only bad news, the Jon Peddie Research institute specifies in its report that from the third to the fourth quarter of 2022, the drop is attributable to CPUs: without taking iGPUs into account, the graphics market is holding up better.

To be exact, there is even talk of an increase in the number of “discrete” (dedicated) GPUs over the period: with 7.43 million cards sold, we are talking about a recovery of 7.8%. In addition, the institute anticipates for the global GPU + iGPU market an annual growth of 0.19% over the period 2022-2026. Nothing to brag about, but at least the fall would be stopped.

Source : VideoCardz