March 29, 2023
Sales of computer graphics cards drop to two-year low

Demand for graphics processing models fell to a 20-year low within the third quarter of 2022, in line with new information from business analyst Jon Peddie Analysis.

The report states that desktop graphics card gross sales in the course of the quarter fell to their lowest stage since 2005, which is because of Nvidia Corp. and Superior Micro Gadgets Inc. pandemic as folks seek for extra highly effective computing {hardware} whereas staying at residence. Nonetheless, with the worldwide financial slowdown and the fast decline in demand, the story modified.

Peddie’s 2022 GPU market summary Q3 The report, launched on Tuesday, covers GPUs for desktop and laptop computer computer systems, in addition to central processing models with built-in graphics chips. In accordance with the report, AMD, Nvidia and Intel Corp. Collectively, it shipped just below 6.9 million discrete desktop GPUs this quarter, down 47% year-on-year. Conversely, Peddie stated the 2008 recession brought on the same 46% drop in GPU shipments between the fourth quarter of 2007 and the fourth quarter of 2008, when it hit an all-time excessive due to the launch of Nvidia’s 8800 GT.

The 2 greatest gamers within the GPU market are, by a long way, AMD and Nvidia. In accordance with the report, the primary was hit a lot tougher than the second. Whereas Nvidia’s discrete desktop GPU shipments fell 40%, AMD’s gross sales fell an alarming 74% year-over-year.

It’s well-known that the wealth of the GPU business is linked to the PC market, and with the decline in gross sales of PCs, tablets and smartphones, it was clear that GPU producers would undergo. Nonetheless, the GPU market has been additional impacted by a novel issue.

Peddie’s information exhibits that GPU gross sales for cryptocurrency mining fell in the course of the quarter – probably one thing related with the Ethereum merger that noticed the world’s second largest decentralized community undertake a brand new consensus algorithm that doesn’t require mining. Within the report, Peddie states that Ethereum miners have helped drive GPU gross sales and costs in recent times, so their exit from the market has brought on important disruption.

Trying ahead, Peddie identified that each AMD and Nvidia are launching new flagship GPUs this yr, particularly the Radeon RX 7000 and RTX 4000 sequence GPUs. These fashions are high-end GPUs, and each firms are anticipated to launch low-end GPUs in 2023, which might result in a surge in gross sales.

Intel entered the GPU market solely this yr, and the entry-level Arc Alchemist sequence GPUs helped the corporate seize 4% of the general market. Nvidia’s market share elevated by 10.2% to 86% total, whereas AMD’s fell to round 10%.

Featured picture: nanadua11/Pixabay; graphics: Jon Peddie Analysis

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