The discrete graphics card sector seems to be experiencing a lull with no fresh releases for quite some time. Yet, surprisingly, GPU shipments are performing better than anticipated. A recent report from Jon Peddie Research (JPR) reveals that shipment numbers for add-in board (AIB) GPUs surged by an impressive 47.9% compared to last year. But what’s behind this growth? Let’s dive into the details.
First and foremost, the statistics are quite promising. Total GPU shipments jumped from 8.7 million units in the first quarter of 2024 to 9.5 million in the second quarter, reflecting a 9.4% increase. This is a significant deviation from the common trend, especially considering the 10-year average is a decline of 7.1%.
This kind of increase runs counter to typical market patterns. Generally, GPU shipments tend to decline in the first half of the year, but this year bucks that trend. It’s hard to overlook the impact of Nvidia’s RTX 40 Super release at the start of 2024. However, we must also consider the launches of new models like the RTX 4070 during the first half of 2023. Plus, both AMD and Nvidia introduced new GPUs in late 2022, contributing to the previous year’s first and second-quarter statistics. Whatever the reasons, the gains we’re seeing this year are certainly notable.
When we look at manufacturer-specific data, it’s consistent with the overall near 50% year-on-year shipment increase. Nvidia continues to dominate the market, holding an impressive 88% share, reflecting a 61.9% rise in shipments compared to the previous year and a 9.7% increase from the last quarter. In contrast, AMD shows more modest growth with a 3% increase year-on-year and 9% from the previous quarter.
On the other hand, the situation for Intel appears grim. Intel held a mere 2% market share in the discrete GPU sector in the second quarter of 2023 due to its Arc Alchemist line, but this year shows 0% share. Significant changes are unlikely until Intel releases its Battlemage GPUs, which may arrive later this year or early next year—but those plans remain unconfirmed.
The GPU industry continues to exhibit unexpected developments. Given the rise of gaming laptops and the steady improvement of integrated graphics, a decline in shipments at the beginning of the year wouldn’t have been a surprise. While Nvidia’s RTX 40 Super has surely played a role in these favorable statistics, can it truly account for the nearly 48% gain? There is hope that this could signal a broader upward momentum, as Dr. Jon Peddie indicated, “After a typical dip in the first quarter, we’ve experienced four quarters of growth.” It should be noted, however, that overall shipments are down compared to two years ago, and it’s essential to remember that shipments do not equate to actual sales.
We are still anticipating updates regarding upcoming GPUs from AMD, Intel, and Nvidia, and once these releases hit the market, we can expect the graphics card landscape to thrive in the coming months.