Nvidia commands a significant 94% share in GPUs, with a projected 27% increase in shipments attributed to customers rushing to purchase ahead of potential tariffs.
The GPU market faced a challenging quarter in Q2 2025, with the U.S. government's ongoing announcement and delay of massive import taxes on semiconductor products, including GPUs, causing ripples throughout the industry.
Despite the turbulence, the total number of GPUs sold during this period reached 11.6 million units, marking a 27% increase compared to the last quarter. However, this growth may be a temporary blip driven by tariffs and the artificial GPU shortage.
Jon Peddie Research president Dr. Jon Peddie reported that midrange and entry-level AIB prices dropped, while high-end AIB prices increased, and most retail suppliers ran out of stock. Prices for mid-range cards normalized last month.
The market dominance remained with Nvidia, holding 94% of the GPU market, an increase of 2.1% over the previous quarter. Nvidia's strong performance was driven by its Blackwell GPU architecture, which saw a 17% sequential revenue growth in that segment. The company reported a 56% year-over-year revenue increase to $46.74 billion in Q2 2025.
Despite geopolitical challenges affecting the Chinese market, Nvidia remained the dominant player. AMD also made a significant impact by aiming for a 20% GPU market share, leveraging its open-source alternatives to Nvidia's closed ecosystem, positioning it as a strong competitor in the AI chip sector. AMD currently holds 6% of the GPU market, a position better than Intel's, whose market share is too small to be registered on the chart.
The overall attach rate for desktop PCs increased to 154%, meaning 1.54 GPUs were sold for every CPU bought by customers. However, the slump in the GPU market could be driven by gamers leaving (or not getting introduced to) PC gaming.
The arrival of processors with powerful on-board graphics, like AMD's Strix Halo chips, could contribute to the slump in the GPU market. It's worth noting that Intel launched its latest-generation GPUs in December 2024, while Nvidia and AMD released theirs in the first quarter of 2025.
Jon Peddie Research anticipates that the GPU market will decrease by 5.4% between 2024 and 2028. Despite the forecast, the Q2 2025 saw a 21.6% increase in desktop PC CPU shipments, indicating a continued demand for computing power.
The ongoing tariffs and shortages, coupled with the forecasted market decrease, present challenges for the GPU industry. However, the competition between Nvidia, AMD, and Intel, as well as the advancements in on-board graphics, promise an exciting future for the sector.
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