GPU Market Nosedives, Sales Lowest In a Decade


from: Tom's Hardware

 

Shipments of integrated and discrete graphics processing units dropped to a 10-year low in the third quarter as PC OEMs reduced procurements of CPUs, and gamers lowered their purchases of existing graphics cards while waiting for next-generation products. In contrast, miners ceased to buy graphics boards due to changes that happened to Ethereum. In general, sales of standalone graphics cards for desktops hit a multi-year low.

Usually, PC makers increase procurement of PC hardware components in the third quarter as they assemble computers to sell them in back-to-school and holiday seasons when sales are high. But as demand for PCs softened recently, manufacturers initiated inventory corrections and lowered their components buying to sell off what they already have.

As a result, sales of integrated and discrete GPU dropped to 75.5 million units in Q3 2022, down 10.5% sequentially and 25.1% year-over-year, according to Jon Peddie Research (JPR) (opens in new tab). In addition, shipments of desktop GPUs fell by 15.43%, and notebook GPUs decreased by 30%, which is the most significant drop since the 2009 recession, JPR notes.


"The third quarter is usually the high point of the year for the GPU and PC suppliers, and even though the suppliers had guided down in Q2, the results came much below their expectations," said Jon Peddie, president of JPR.

Since Intel is the largest producer of CPUs, it is also the largest supplier of PC graphics processors. The company increased its domination and commanded 72% of the PC GPU market in Q3 2022 as shipments of its GPUs rose by 4.7%. By contrast, Nvidia's share dropped to 16% as it lost 19.7% of sales, whereas AMD's share collapsed to 12% as its GPU shipments fell 47.6% sequentially.

Interestingly, sales of standalone graphics cards for desktops (including the best graphics cards for gaming) decreased to 6.89 million, or by 33.5% quarter-over-quarter, the lowest quarterly result in years.

“All the companies gave various and sometimes similar reasons for the downturn: the shutdown of crypto mining, headwinds from China’s zero-tolerance rules and rolling shutdowns, sanctions by the US, user situation from the purchasing run-up during Covid, the Osborne effect on AMD while gamers wait for the new AIBs, inflation and the higher prices of AIBs, overhang inventory run-down, and a bad moon out tonight,” said Peddie. “Generally, the feeling is Q4 shipments will be down, but ASPs will be up, supply will be fine, and everyone will have a happy holiday.”

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