Market research data released by Jon Peddie Research indicates that graphics card shipments declined during the latest quarter, reflecting ongoing challenges in the PC hardware market as component prices remain elevated.
According to the firm’s latest report, global GPU shipments reached 11.8 million units during the quarter, representing a 0.6 percent decline compared with the previous quarter. Despite the decrease, the market still recorded year-over-year growth, suggesting that demand remains stronger than it was during the same period last year.
Graphics Card Market Shows Resilience
While the latest figures indicate a slowdown, the graphics card segment has performed better than several other areas of the PC hardware industry.
The first quarter of 2025 saw GPU shipments fall by roughly 10 percent, making the latest decline comparatively modest. Analysts note that seasonal fluctuations often impact the opening months of the year, with graphics card sales traditionally softening after stronger holiday demand.
Even so, long-term forecasts have been revised downward. Jon Peddie Research now expects approximately 183 million graphics cards to be installed worldwide between 2024 and 2029, representing a reduction of 3.3 percent from previous projections.
The adjustment reflects ongoing concerns about component costs and changing consumer spending patterns.
NVIDIA Maintains Dominant Position
Despite increased competition and shifting market conditions, NVIDIA continues to hold a commanding lead in the dedicated graphics card sector.
The company’s market share slipped slightly during the quarter, losing 0.4 percentage points. Both NVIDIA and AMD ceded small portions of market share, while Intel recorded a modest gain.
Even with these changes, NVIDIA remains overwhelmingly dominant, controlling approximately 90 percent of the graphics card market. AMD accounts for around 8 percent, while Intel holds the remaining share.
Industry analysts note that Intel’s growth remains limited, though the company was the only major GPU vendor to record a positive movement during the quarter.
NVIDIA’s continued dominance comes despite higher graphics card prices and a relatively quiet period in terms of major product launches.
CPU Shipments Experience Steeper Decline
While the GPU market showed relative stability, processor shipments experienced a far more significant downturn.
According to the report, CPU shipments fell 24 per cent compared with the previous quarter, reaching approximately 15.7 million units. Compared with the same period a year earlier, processor shipments were down by 25 per cent.
The sharp decline highlights broader challenges facing the PC hardware market, where rising platform costs have become a growing concern for consumers.
DDR5 Costs May Be Influencing Demand
Although the report does not directly identify a single cause for the decline in processor shipments, industry observers point to the increasing cost of DDR5 memory as a potential factor.
Many of the latest desktop platforms require DDR5 memory exclusively, increasing the overall cost of system upgrades and new PC builds. This includes recent processor families from both AMD and Intel, which rely heavily on DDR5-based ecosystems.
Higher memory prices can significantly increase the total cost of ownership for consumers, potentially delaying upgrade decisions and reducing demand for accompanying components such as motherboards and processors.
Source: Jon Peddie Research
