GPU Market Nosedives, Sales Lowest In a Decade
Integrated and discrete graphics processing unit shipments drop to 10-year low in Q3 as PC OEMs procure less CPUs and gamers buy fewer existing graphics cards while waiting for next-gen products depressed. In contrast, miners no longer buy graphics boards due to the changes that happened to Ethereum. In general, sales of standalone graphics cards for desktops hit multi-year lows.
PC makers typically increase procurement of PC hardware components in the third quarter. This is because computers are assembled and sold during the high sales times of back-to-school and holiday seasons. However, as demand for PCs weakened recently, manufacturers began destocking and buying fewer parts to sell off existing parts.
As a result, integrated and discrete GPU revenue in Q3 2022 fell to 75.5 million units, down 10.5% quarter-on-quarter and down 25.1% year-over-year. John Peddy Research (JPR) (opens in new tab)Also, desktop GPU shipments dropped 15.43%, while notebook GPU shipments dropped 30%.
“Q3 is typically the high point of the year for GPU and PC suppliers, and although suppliers dropped in Q2, results were well below expectations.
Since Intel is the largest producer of CPUs, it is also the largest supplier of PC graphics processors. The company increased its dominance as GPU shipments increased by 4.7%, and in Q3 2022, he accounted for his 72% of the PC GPU market. In contrast, Nvidia’s share dropped to 16% as he lost his 19.7% of sales, while AMD’s share dropped to 12% as his GPU shipments fell by 47.6%.
Interestingly, sales of desktop standalone graphics cards (including gaming-optimized graphics cards) fell to 6.89 million units, down 33.5% quarter-on-quarter.
“All companies cited different, sometimes similar, reasons for the recession: crypto mining shutdowns, headwinds from China’s zero-tolerance rules and gradual shutdowns, sanctions from the US, surge in purchases during Covid. It’s the user situation, the Osborne effect, while gamers wait for new AIBs, inflation, higher AIB prices, lower overhanging inventory, and a bad month tonight at AMD. It is expected to decline, but ASP will increase, supply will be good and everyone will have a good holiday.”