Gamers are purchasing GPUs again | ENBLE

Gamers are purchasing GPUs again | ENBLE

Graphics Card Market Shows Signs of Recovery with Promising Second Quarter

AMD RX 7900 XTX Image source: Jacob Roach / ENBLE

In an unexpected turn of events, the graphics card market is showing signs of growth over the last few months, despite it traditionally being a weak period of the year for graphics card sales. Jon Peddie Research, in its latest market report, revealed that GPU shipments increased by 11.6% in the second quarter of 2023. Although the year-to-year figures remain grim with a 27% decrease, this quarterly increase is a cause for optimism and indicates a potential recovery.

The market report covers all platforms and types of GPUs, including desktop GPUs and desktop add-in boards (AIBs). Desktop GPUs experienced a hefty 36% decrease compared to the same period last year. However, desktop add-in boards, which provide the option to upgrade a desktop computer’s graphics performance, bucked the trend with a modest increase of 2.9%.

The quarterly increase in GPU shipments is considered surprising and represents great news for the overall market. Traditionally, the second quarter is a sluggish period for the PC market, making this recovery even more remarkable. Of the three major GPU manufacturers, AMD had the best quarter, managing to increase its market share by 1.2% at the expense of Intel (-0.4% loss) and Nvidia (-0.8% loss). More impressively, AMD shipped 22.9% more graphics cards than the previous quarter, followed by 11.7% for Intel and 7.5% for Nvidia. Although Nvidia had the most total shipments this quarter, AMD’s strong performance in desktops stands out.

GPU Market Share Image source: Jon Peddie Research

AMD’s increase in shipments is intriguing, given that there were no major product launches during this period, aside from the release of the RX 7600 in May. It appears that the affordability of AMD’s last-gen GPUs, which have received multiple price cuts, has fueled the demand and helped them clear out old stock. Even current-gen cards can now often be found below their initial list price, posing an advantage for AMD. On the other hand, Nvidia’s GPUs usually sell around the list price or slightly below, with some overclocked models commanding higher prices.

Despite sitting out the current and next generations’ race against Nvidia, AMD seems to be holding its ground with competitively priced upcoming graphics cards, such as the RX 7800 XT, RX 7700 XT, and the already released RX 7600. This competitive pricing strategy could contribute to another good quarter for AMD.

Whilst there are positive signs of recovery in the graphics card market, Jon Peddie Research asserts that it is unlikely to reach the levels seen a decade ago when GPU sales were at their peak. However, the analyst believes that both AMD and its competitors, Nvidia and Intel, are poised for a strong second half of the year.

In conclusion, the recent market report from Jon Peddie Research indicates a much-needed recovery in the graphics card market. The unexpected quarterly increase in GPU shipments, particularly for AMD, has sparked optimism among industry observers. AMD’s strategy of offering affordably priced last-gen GPUs, combined with the anticipation surrounding its upcoming graphics cards, positions the company for continued success in the market. While it may not reach the peak of a decade ago, the second half of the year holds promise for all major GPU manufacturers.