Nvidia's dominance in GPU shipments remains strong, with a 94% market share; a 27% increase in shipments may be due to customers anticipating tariffs.
The GPU market has been experiencing a series of fluctuations, with the U.S. government's ongoing announcement and delay of massive import taxes on semiconductor products, including GPUs, playing a significant role.
During the second quarter of 2025, the GPU market saw a total of 11.6 million units sold, a figure that pales in comparison to the 21.7 million desktop PC CPUs sold during the same period. This discrepancy can be attributed to the ongoing shortages that have plagued GPU releases since the beginning of the year, with buyers struggling to find units at suggested retail prices as late as the start of the third quarter.
The overall attach rate for desktop PCs increased to 154%, meaning 1.54 GPUs were sold for every CPU bought by customers. This trend is surprising given the shortages, suggesting a high demand for GPUs despite the scarcity.
The second quarter of 2025 also saw a 27% increase in graphics card shipments and a 21.6% jump in CPU shipments compared to the last quarter. However, industry experts suggest that this increase in GPU sales could be a temporary blip driven by tariffs and the artificial GPU shortage.
The market dominance remains with Nvidia, which holds a market share of 94%, an increase of 2.1% over the previous quarter. Intel's market share in the GPU market is so small it did not even register on the chart. AMD, on the other hand, holds a 6% market share.
Notable developments include AMD's forthcoming Strix Halo chips, which boast powerful on-board graphics. These processors could potentially contribute to the slump in the GPU market by offering an alternative to dedicated GPUs for some users.
Prices for mid-range GPUs have only recently normalized, while high-end AIB prices have increased, according to Jon Peddie Research president Dr. Jon Peddie. The second quarter was unusual, he stated, due to AIB prices dropping for midrange and entry-level GPUs, while high-end AIB prices increased, and most retail suppliers ran out of stock.
Looking forward, Jon Peddie Research anticipates that the GPU market will decrease by 5.4% between 2024 and 2028. Intel is expected to launch new GPUs around Q1/Q2 2026 at a performance level comparable to certain mid-range competitors, which could potentially increase its market share in the future. However, the exact market share size of Intel in Q3 2025 is not specified.
The slump in the GPU market could also be driven by gamers leaving (or not getting introduced to) PC gaming, further contributing to the decrease in GPU sales. As the market continues to evolve, it will be interesting to see how these trends unfold in the coming quarters.
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