The bad news continues for Intel: it has been kicked out of the GPU market
Graphics card sales have soared 48% in the past year, driven by AI and PC gaming power, since Sony and Xbox launched their exclusive games on Steam. All the manufacturers are growing… except Intel, which has virtually disappeared.
This is data from analyst firm Jon Peddie Research (JPR), which tracks graphics card shipments around the world.
Intel is having a disastrous year, with reliability issues for some of its CPUs and market losses to AMD. Even Qualcomm has made an offer to buy Intel .
According to JPR statistics, 9.5 million graphics cards were shipped to stores and distributors in the second quarter of 2024, an increase of 9.4% from the previous quarter, and a 48% increase from the same period last year.
NVIDIA saw the biggest growth, up 9.7%, and sales up an astonishing 61.9% year-over-year.
For its part, the AMD brand is growing this year in a similar way, by 9%, but its sales compared to 2023 are up only by 3%.
Intel is taking the worst part, as I mentioned. Since the beginning of the year, its sales have been falling non-stop, to the point of becoming insignificant.
At the end of 2023, Nvidia had 80% of the market, compared to 17% for AMD and 2% for Intel. In the second quarter of 2024, Nvidia's share rises to 88%, AMD's share drops to 12%, and Intel disappears with 0%.
Intel's ARC Alchemist gaming graphics cards started out selling reasonably well, but delivery delays and driver performance issues caused gamers to lose interest.
Something similar happened with AMD’s latest generation of Radeon GPUs, which didn’t offer the same performance/price ratio as in previous years. Meanwhile, Nvidia has made a quantum leap with its AI-based technologies, such as DLSS 3 and AI frame generation.
We'll see what happens in a few months, with the new generation arriving soon. Intel isn't giving up and wants to introduce its Intel ARC Battlemage cards by the end of the year. Nvidia plans to launch the RTX 5000 at CES 2025, in January, and the new AMD Radeon RX 8000 on similar dates.