Largest Quarterly Drop in GPU Market Since 2009 – Q3 shipments down 10.3% YoY and 25% YoY

Largest Quarterly Drop in GPU Market Since 2009 - Q3 shipments down 10.3% YoY and 25% YoY

Jon Peddie Research reports that global graphics card market growth will reach 75.5 million units in the third quarter of 2022, with PC processor shipments down 19% year-on-year.

Overall, GPUs will grow at a CAGR of 2.8% during 2022-2026, and the installed base will reach 3,138 million units by the end of the forecast period. In the next five years, the penetration of discrete graphics cards (dGPU) in PCs will increase to the level of 26%.

Compared to last year, total GPU shipments, including all platforms and all types of graphics cards, were down 25.1%, desktop cards were down 15.43%, and notebooks were down 30%. This is the biggest drop since the 2009 recession.

GPU and CPU market

  • AMD’s overall market share decreased by 8.5% compared to last quarter, Intel increased by 10.3%, and NVIDIA’s share decreased by 1.87%.
  • Graphics card shipments were down 10.3% from last quarter, with AMD shipments down 47.6%, Intel shipments up 4.7%, and NVIDIA shipments down 19.7%.
  • The PC processor market was down 5.7% quarter-over-quarter and down 18.6% year-over-year.
  • Production of discrete graphics cards fell by 33.5% compared to the previous quarter.

GPUs are the market’s leading indicator because graphics card data enters the system before vendors ship PCs. Most semiconductor suppliers are forecasting an average decline of 0.21% next quarter. Last quarter they were targeting 2.79%, expectations turned out to be overstated.

GPU and CPU market

The companies cited different, but sometimes similar reasons for the decline: the end of cryptocurrency mining, complicated relations with China, US sanctions, a sharp increase in purchases of some devices during Covid, the Osborne effect for AMD, which was expected for new devices.

“Overall, the impression is that shipments in the fourth quarter will be down, but ASPs will be up, shipments will be OK, and everyone will be happy for the holidays,” said John Paddy, president of JPR.

Source: Jon Peddie Research

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