Despite new models, the graphics card market is collapsing

A report from a specialist company indicates that deliveries and sales of graphics cards and processors worldwide will experience a record decline by the end of 2022.

GPU sales are down, according to a report from Jon Peddie Research. The industry saw a 10.3% decline in graphics card shipments compared to last quarter. AMD and Nvidia are losing ground to Intel, which continues to gnaw market share.

Disappointing numbers

According to the company behind the report, global shipments of all types of graphics cards were down 25.1% in the third quarter of 2022 compared to the same period last year. Shipments of desktop graphics cards fell 15.4% over the same period and notebooks dropped 30%. The biggest drop since the 2009 recession.

As for the portable computing sector, if we could expect a third quarter to be less gloomy than the second, it isn’t. GPU shipments were down 10.3% despite the back-to-school promotion period. AMD suffered the most, with a 47.6% decline. Nvidia, which is not doing much better, shipped 19.7% fewer GPUs than in the second quarter.

Intel is doing better since shipments increased by 4.7%. The US brand is also the only one to gain market share this quarter, with 72% market share, versus 16% for Nvidia and 12% for AMD. The latter had a market share of 20% in the second quarter. However, it must be remembered that the American brand is still embryonic in this market and its graphics cards are currently aimed at the entry and mid-range.

Intel gained 10 points of market share in one year, while AMD lost 6 in the same period. ©Jon Peddie Research

A stormy situation

According to Jon Peddie Research, 75.5 million graphics cards were sold in the third quarter. But GPUs aren’t the only components in trouble. The company also indicates that the processor market is down 18.6% compared to the third quarter of 2021. The company’s president, Jon Peddie, gave his analysis of these worrying numbers.

“All companies gave different, sometimes similar, reasons for these declines: the end of cryptocurrency mining, China’s zero-tolerance policy for Covid and the many closures resulting from it, the United States sanctions against these countries, the situation of consumers after the increase in purchases during the Covid, the Osborne effect (a premature announcement of the release of a new product, causing customers to cancel or postpone purchases of existing products because they will soon be obsolete: Wikipedia) on AMD GPUs that gamers expect cards from third-party manufacturers, inflation and rising prices […] »

Despite everything, the company predicts a compound annual growth rate, that is, the sector should see a growth of 2.8% over the period from 2022 to 2026, eventually reaching 3.1 billion euros. In the shorter term, Jon Peddie, on the other hand, announces that deliveries are still falling in the fourth quarter and thus a large inventory at resellers.

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