GPU Sales Slump as Gamers Await Next-Gen Cards

2024-12-11

The desktop GPU market has experienced a significant downturn in the third quarter of 2024. According to Jon Peddie Research (JPR), sales of discrete graphics cards declined by 7.9% year-over-year, reaching 8.1 million units. This is a substantial drop, especially considering the typically strong sales during this period.

A Wait for the Next Generation

The primary reason for this decline seems to be the anticipation of upcoming next-generation graphics cards from AMD and Nvidia. Gamers are holding off on purchasing current-generation GPUs, hoping to invest in the more powerful RTX 5000 and RDNA 4 series, which are expected to launch at CES 2025.

Market Share Shifts and

Nvidia continues to dominate the market, capturing a staggering 90% share. AMD, despite recent successful launches like the RX 7900 GRE and RX 7800 XT, has seen its market share shrink to 10%. Intel’s Arc GPUs, unfortunately, have not made a significant impact in the standalone GPU market.

A Bleak Forecast

JPR predicts a gloomy future for the discrete GPU market, forecasting a negative compound annual growth rate of -6% through 2028. This decline is attributed to several factors:

Next-Gen Anticipation: Gamers are delaying purchases in anticipation of the upcoming generation of GPUs.
Decreasing Attach Rate: More PCs are shipping with integrated graphics, reducing the demand for discrete GPUs.
Potential Price Hikes: The looming threat of import tariffs, particularly in the US, could lead to significant price increases for PCs and components.

What Undercode Says:

The current slump in GPU sales is a clear indication of the market’s anticipation for the next generation of graphics cards. While this may be a temporary setback for GPU manufacturers, it highlights the growing demand for high-performance graphics solutions. As the industry evolves, it will be interesting to see how AMD and Nvidia respond to these challenges and capitalize on the opportunities presented by the next-gen hardware.

Additionally,

Overall, the GPU market is poised for significant change in the coming years. The next-generation of GPUs, coupled with evolving gaming trends and emerging technologies like AI and VR, will shape the future of this dynamic industry.