The world of discrete graphics cards has been relatively quiet lately, with no new releases hitting the market in months. However, behind the scenes, GPU shipments are booming in a way that no one could have predicted. According to a new report by Jon Peddie Research (JPR), add-in board (AIB) GPU shipments skyrocketed by a staggering 47.9% year-over-year. This unexpected surge begs the question: what’s driving this growth?
Let’s dive into the numbers. Total GPU shipments jumped from 8.7 million units in the first quarter of 2024 to 9.5 million units in the second quarter, representing a 9.4% increase. This growth is remarkable considering the historical trend of a 7.1% average decline during the first two quarters.
The usual seasonal dip in GPU shipments seems to have been completely reversed this year. While the release of Nvidia’s RTX 40 Super series at the beginning of 2024 undoubtedly contributed to this trend, it’s important to remember that new GPUs from both AMD and Nvidia were launched in late 2022, and those shipments likely impacted the data for the first and second quarters of 2023.
When we break down the market share by manufacturer, the story becomes clearer. Nvidia continues to dominate, holding an impressive 88% market share, with a 61.9% increase in shipments compared to last year and a 9.7% improvement from the previous quarter. AMD, while showing growth, lags behind with more modest gains of 3% year-over-year and a similar 9% quarter-to-quarter increase.
Meanwhile, Intel’s performance continues to be a disappointment. While Arc Alchemist helped them secure a 2% market share in the second quarter of 2023, this year’s data puts them at a dismal 0%. Their future in the discrete GPU market remains uncertain, and they are heavily relying on the launch of their Battlemage series, which might happen later this year or early next year, but remains unconfirmed.
The continued growth in the GPU market is particularly surprising given the rise in laptop gaming and the increasing capabilities of integrated graphics. The release of Nvidia’s RTX 40 Super series undeniably played a significant role, but it’s difficult to solely attribute the 48% increase in shipments to this single event.
It’s tempting to believe that this surge is indicative of a broader upward trend in the GPU market, as Dr. Jon Peddie suggests: “With one little dip in the first quarter (seasonally normal), we’ve seen four quarters of growth.” However, it’s essential to remember that total shipments are still lower than they were two years ago, and shipments don’t directly correlate with sales.
While the current outlook for the GPU market seems positive, the future remains uncertain. New GPU releases from AMD, Intel, and Nvidia are expected in the coming months, and those releases will undoubtedly shape the market in the upcoming quarters. The ongoing growth in the GPU market is a promising sign for the future of gaming and high-performance computing.
