The graphics card market has undergone a significant adjustment in the last quarter of 2024, with a notable loss of market share for NVIDIA in favor of AMD and Intel. This is reflected in the data from the Jon Peddie Research (JPR) report, which highlights a 6.3% drop in NVIDIA’s market share in the dedicated GPU market (Add-in Boards, AIBs).
This shift has occurred in a context of high demand for graphics cards and limited supply, particularly due to the priority production of AI GPUs at TSMC. Meanwhile, AMD has capitalized on the situation with aggressive pricing strategies to clear its inventory, resulting in a 5% increase in its market share. For its part, Intel has also grown by 1.2%, consolidating its position in the sector.
The GPU Market in the Fourth Quarter of 2024
The JPR report reveals a mixed outlook for the graphics card industry, with moderate growth in dedicated GPU (AIB) shipments and increasing uncertainty for the immediate future.
Key findings from the report:
- AMD’s market share grew by 5% compared to the previous quarter.
- Intel increased its share by 1.2%, solidifying its entry into the GPU market.
- NVIDIA suffered a 6.3% decline, reflecting a reduced presence in the gaming graphics card sector.
- The total desktop CPU market decreased by 7.8% year-over-year, although it grew by 11.6% quarter-over-quarter.
- Total GPU shipments, including integrated ones, increased by 6.2%, surpassing the average growth over the last 10 years.
According to the president of Jon Peddie Research, Dr. Jon Peddie, although shipments have increased slightly by 4% quarter-over-quarter, the market still has not recovered its traditional seasonality. Additionally, he warns that the new tariffs imposed by the U.S. could further impact the industry in the coming quarters.
Key Factors in NVIDIA’s Decline
NVIDIA’s decline in the graphics card market is due to several combined factors:
- Priority in AI GPU production:
- TSMC has dedicated 70% of its manufacturing capacity to NVIDIA’s AI GPUs, reducing the production of gaming graphics cards.
- This has created a shortage of units in the retail channel and an increase in prices for available models.
- AMD’s stock-clearing strategy:
- AMD has aggressively cut prices to clear its GPU inventory before launching new models.
- Gamers have responded positively to this strategy, boosting AMD’s sales in the last quarter.
- Impact of inflation and tariffs:
- It is expected that U.S. tariffs on tech products will take effect in the second quarter of 2025, which could raise graphics card prices.
- Consumers have anticipated these increases and have purchased GPUs before prices rise further.
What to Expect in 2025?
The graphics card market faces one of the most uncertain periods in recent years. Despite strong demand, the combination of inflation, tariffs, and production adjustments could lead to new declines in sales during the second quarter of the year.
On the other hand, both AMD and NVIDIA plan to launch new GPUs in 2025, which could revitalize the sector and rebalance the market. However, JPR warns that the impact of these launches will depend on stock availability and each manufacturer’s pricing strategy.
In conclusion, NVIDIA has lost ground in the last quarter of 2024, but it still remains the undisputed leader in the graphics card market. The growth of AMD and Intel reflects greater competition, which could benefit consumers if companies can maintain competitive prices in the coming months.