According to a recent analysis from Jon Peddie Research, the GPU market is slowly but steadily recovering from the supply and demand challenges that have plagued the sector for the past two years.

According to the research, GPU shipments fell 6.2% in the first quarter of 2022 compared to the fourth quarter of 2021, with 96 million units shipped in Q1. All of the major players are represented, including Intel, AMD, and Nvidia, who offer both integrated and discrete graphics.

When broken down by company, AMD experienced the smallest drop of 1.5%, while Nvidia experienced a moderate 3.2% increase. When compared to the previous quarter, Intel’s market decline was the most significant, at a minus 8.7%.

On the other hand, shipments of consumer graphics cards from add-in board partners (AIBs) increased by 1.4% year over year. As a result, it appears that OEM machines, particularly laptops, are causing these shipment cutbacks.

GPU market share has shifted dramatically over the last year, with Nvidia and AMD eroding Intel’s market share from Q1 2021 to Q1 2022, and Nvidia taking the lead over AMD

Because of the enormous amount of integrated graphics processors it ships in both desktops and laptops, Intel had a large 68% GPU market share in Q1 2021. With a 17% market share, AMD came in second, thanks primarily to integrated graphics solutions, though it did ship some discrete GPUs as well. Nvidia, on the other hand, only had 15% of the market share, but it was solely due to specialized solutions, as the business does not provide any integrated graphics options.

Fast forward to the first quarter of 2022, and the GPU market share picture has shifted dramatically. Nvidia has risen into the second position with a 21% market share, with AMD improving marginally to 19%. Intel has lost 8% of its market share and currently stands at 60%. This is noteworthy given that discrete GPUs account for 100% of Nvidia’s graphics shipments.

Due to Intel’s entry into the discrete GPU arena, discrete GPU shipments from AMD, Nvidia, and now Intel has changed over the last year. Of course, Intel had no market share in the first quarter of 2021, with Nvidia leading by 81% and AMD by 19%. That reversed in the fourth quarter of 2021 when Intel gained a respectable 5% market share, AMD fell a point to 18%, and Nvidia took the lead with 78%.

In the first quarter of 2022, there was no significant shift in market share, with AMD and Intel swapping 1% of the market share. AMD presently has a 17% market share, Intel has a 4% market share, and Nvidia has a 78% market share. What’s more unexpected is that Intel’s DG1 graphics solution, which isn’t especially powerful, is responsible for all of the company’s dedicated GPU exports. The great bulk of Intel’s 4–5% discrete GPU market share is likely due to major laptop OEMs choosing Intel GPUs, which are likely cheaper than AMD and Nvidia’s offerings.

Overall, this data appears to suggest that GPU demand has been steadily declining, which is excellent news given last year’s explosive year, when GPU supply could not keep up with demand. With the decline in mining profitability, as well as the upcoming releases of Nvidia’s Ada architecture and AMD’s RDNA 3, supply is expected to improve.

By the end of the year, GPUs could be selling at or below MSRP. However, we believe that once the next generation of GPUs is released, demand will once again outstrip supply, at least in the short term.

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