Sales of graphics cards and CPUs decline, as NVIDIA gains market share against Intel and AMD
The first quarter of 2025 ended with a significant decline of 12% in global shipments of graphics processing units (GPUs) for personal computers, according to the latest report from Jon Peddie Research (JPR). A total of 68.8 million GPUs were shipped, compared to 61.9 million CPUs distributed during the same period. This figure confirms a downward trend that aligns with the seasonality of the sector but remains below historical averages.
Overall slowdown and concerning signs
Although the first quarter of the year typically shows flat or declining behavior, the report highlights that this time the drop has been greater than the average of the last decade (−2%). Year over year, the GPU market as a whole fell by 1.6%, with more pronounced declines in the desktop (−16%) and laptop (−10%) segments.
In parallel, CPU sales declined by just 0.3% compared to the previous quarter, but for AMD and Intel, the figures were more severe: −12% and −14%, respectively.
NVIDIA grows at the expense of its competitors
The only company that improved its position amid this contraction was NVIDIA, which increased its market share by 3.6 percentage points, against a loss of −2.1% from Intel and −1.6% from AMD. This advance consolidates NVIDIA as the undisputed leader in the graphics sector, driven by its dominance in discrete GPUs and its strong presence in gaming and artificial intelligence applications.
GPU penetration and future evolution
Despite the challenging environment, the integration rate of GPUs in PCs increased to 111%, a figure that includes both integrated and discrete graphics in desktops, laptops, and workstations.
In the long term, the outlook is not encouraging: the GPU market is expected to experience a negative compound annual growth rate of −6.1% between 2025 and 2028, with a installed base of 2.8 billion units by the end of the period. Additionally, the penetration of discrete GPUs in PCs will barely reach 15%.
Geopolitical factors and supply chain impact
The report attributes part of this slowdown to the volatility of international trade, particularly following tariff measures initiated by the Trump administration, which have disrupted export and import dynamics in the tech sector.
“The PC market is caught in the crossfire of trade wars, with changing regulations leading many suppliers to slow orders or, in some cases, expedite them to secure prices,” warned Jon Peddie, president of JPR.
This strategy of advanced purchasing, the analyst cautions, could hinder sales in future quarters, as some demand has been pulled forward.
Conclusion
Despite technological advances and the diversification of applications for GPUs—from gaming to artificial intelligence and professional design—the graphics market for PCs shows signs of structural fatigue, exacerbated by macroeconomic uncertainty and imbalances in the supply chain.
JPR concludes that sales of PCs and GPUs will continue to weaken throughout 2025 unless there is a notable change in demand or in the geopolitical environment.
via: jonpeddie