For now, the graphics card market appears to be demonstrating a robust and flourishing state
Shipments of graphics cards by the largest manufacturers of PC components increased by 2.9% compared to the period of the previous quarter, but experienced a significant drop of 36% compared to the second quarter of the previous year, according to the latest report of the analyst company Jon Peddie Research (JPR). AMD managed to significantly increase its share in this part of the market during the quarter, right before the official launch of the new Radeon RX 7000 series of graphics cards.
Graphics card manufacturers shipped a total of 6.4 million desktop graphics cards during the second quarter of 2023, up slightly from 6.26 million in the first quarter, but down 36.3% from 10 ,37 million pieces in the same quarter of the previous year. It should be noted that the sales of desktop graphics cards in the first quarter of 2023 were the worst in the last few decades, so the increase of 2.23% is not really a significant achievement.
In terms of market share and dynamics, Nvidia maintained its leading position with 80.2% market share and 5.13 million graphics cards shipped, but its total shipments fell 1.4% quarter-on-quarter and 34 .8% compared to the same period last year.
JPRDespite everything, Nvidia retained a lion's share of the lion's share of 80.2%. In contrast, shipments of AMD and its desktop graphics card partners rose to 1.09 million units, or 46.8% quarter-on-quarter, but fell 48.7% year-on-year, which enabled AMD to take 17% market share of the desktop graphics card market. As for Intel, shipments of its Arc series graphics cards were reduced, causing the company's market share to drop to 2%.
Graphics card market shows stability and signs of growth in Q3 2023.
Typical of this situation, sales of graphics cards in the second quarter are lower than the shipments of manufacturers in the first quarter, but in the second quarter of 2023, the shipment of graphics cards increased by 2.9%, emerging from the crisis period that saw the biggest decline in a decade of 9, 7%. John Paddy attributes this small success to the reduced prices of graphics cards, as well as the release of upcoming games that the gaming market has been eagerly waiting for, such as Starfield.
JPR“The unexpected results in the second quarter are better than expected as it appears that old stocks have finally sold out, while at the same time some of the suppliers have offered lower prices,” said Dr. Jon Peddie, president of JPR. “Demand shows that the market for desktop PC graphics cards remains very healthy and vibrant.” New games, of which Starfield is certainly the most significant, stimulate the demand for new graphics cards that can extract the maximum performance and graphic details from new generation games. It seems that the third quarter of the current year will continue with the growth trend. These are very encouraging indicators for the PC industry in general”.
In the second and third quarters of 2023, AMD and Nvidia presented their new generations of “mainstream” graphics cards, as well as those with even better performance, such as: Radeon RX 7600, RX 7700 and RX 7800, and there are also models from the GeForce RTX 4060 and RTX 4070 series that are built and positioned to be best-in-class graphics cards.
“The second quarter of 2023 gave us good indications that this part of the market is finally stabilizing,” said C. Robert Dow, an analyst at JPR. “Nvidia gaming GPU revenue grew 22% year-over-year, and AMD expects gaming revenue to rebound in the second half of 2023. Nvidia unveiled the mid-range RTX 4060 Ti and RTX 4060 cards, and AMD will launch its mainstream models from the Radeon 7000 series these days. The medium-priced, i.e. mainstream, class of graphics cards is historically the most popular among the gaming population, so we should expect good numbers by the end of 2023 when it comes to this part of the IT market.”