Nvidia Dominates the PC Graphics Card Market: Intel Exits Completely, AMD Holds a Tiny Share

Nvidia Dominates the PC Graphics Card Market: Intel Exits Completely, AMD Holds a Tiny ShareWhile Intel's processors still dominate the PC gaming market thanks to their integrated graphics, the company's influence in the discrete graphics card market has dwindled. Recent research from JonPeddieResearch (JPR) shows Nvidia's dominance in the PC graphics card market is solidifying, with Intel's market share dropping to zero

Nvidia Dominates the PC Graphics Card Market: Intel Exits Completely, AMD Holds a Tiny Share

While Intel's processors still dominate the PC gaming market thanks to their integrated graphics, the company's influence in the discrete graphics card market has dwindled. Recent research from JonPeddieResearch (JPR) shows Nvidia's dominance in the PC graphics card market is solidifying, with Intel's market share dropping to zero.

JPR data shows PC graphics card shipments reached 9.5 million units in the second quarter of 2024, a 9% increase from the previous quarter. This outcome was surprising, as the average Q2 shipment volume over the past decade has typically declined by 7.1%. JPR attributes this growth to the release of new graphics cards in the first quarter.

However, the more noteworthy aspect is the competitive landscape between AMD, Nvidia, and Intel in the discrete graphics card market. According to JPR, Intel completely exited the discrete graphics card market earlier this year. This shift has virtually turned the PC discrete graphics market into a two-horse race between Nvidia and AMD.

But the market landscape is far from balanced. Nvidia currently holds a commanding 88% market share, practically controlling the entire market. In contrast, AMD holds the remaining 12%. Compared to last year, Nvidia's market share has expanded from 80% to 88%, while AMD has filled the void left by Intel's departure.

"The discrete graphics market is always a bit of a surprise," noted Jon Peddie, president of JPR, in a statement. "Despite the small seasonal dip in Q1, the market has now been growing for four consecutive quarters. While overall shipments are down compared to two years ago, we remain optimistic about the future, especially with upcoming exciting games that will leverage the powerful performance of discrete graphics."

Ironically, Intel just released its LunarLake mobile processors for laptops, featuring a new Xe2 graphics core. Although Intel had planned on launching its Battlemage series of discrete graphics cards, this product has been delayed, initially expected in 2023. Meanwhile, Nvidia's GeForce 5000 series (codenamed "Blackwell") is highly anticipated and expected to be released soon.

C. Robert Dow, an analyst at JPR, believes PC discrete graphics card prices should remain stable until the next generation of cards from Nvidia and AMD are released. However, it seems a miracle would be needed for Intel to regain market share in the face of these competitors.

Intel's exit undoubtedly marks a significant shift in the PC graphics card market. Although Intel remains dominant in the processor space, its future in the discrete graphics realm is uncertain. Nvidia firmly reigns supreme, while AMD is striving to secure a larger market share. The future of the PC graphics card market is intriguing and worth watching closely.