Demand for GPUs fell to a 20-year low in the third quarter of 2022, according to new data from industry analyst John Beddy Research.
The report shows that sales of desktop graphics cards during the quarter fell to their lowest level since 2005, adding to more misery for chip makers like Nvidia Corp. and Advanced Micro Devices Inc. Pandemic as people sought more powerful computing devices while staying at home. But the story has changed amid the global economic slowdown and demand waning fast.
With my own hands 2022 GPU Market Summary Q3 The report, released on Tuesday, covers GPUs for desktop and laptop computers, as well as CPUs with integrated graphics chips. According to the report, AMD, Nvidia, and Intel Corp. shipped just under 6.9 million discrete desktop GPUs in the quarter, down 47% from the same period a year earlier. By contrast, Bede said, the 2008 recession caused a similar 46% drop in GPU shipments between the fourth quarter of 2007, when it hit an all-time high thanks to the launch of Nvidia’s 8800 GT, and the fourth quarter of 2008.
The two biggest players in the GPU market, from some distance, are AMD and Nvidia. According to the report, the former was injured more than the latter. Although Nvidia’s desktop discrete GPU shipments were down 40%, AMD’s sales were down 74% year-over-year.
It’s common knowledge that the fortunes of the GPU industry are tied to the PC market, and with sales of PCs, tablets, and smartphones declining, it was clear that GPU manufacturers would struggle. However, the GPU market has been hit by a unique factor.
Peddie data shows that cryptocurrency mining GPU sales collapsed during the quarter — something likely related to the consolidation of Ethereum, which saw the world’s second largest decentralized network adopt a new consensus algorithm that doesn’t require mining. In the report, Peddie notes that Ethereum miners have helped inflate GPU sales and prices in recent years, so their exit from the market has caused significant disruption.
Looking ahead, Peddie pointed out that both AMD and Nvidia have launched new flagship GPUs this year, namely the Radeon RX 7000 and RTX 4000 GPUs. These models are high-end GPUs, and the two companies are expected to launch new GPUs. lower-end graphics in 2023, which could lead to increased sales.
Intel entered the GPU market only this year and the entry-level Arc Alchemist series of GPUs helped the company capture 4% of the overall market. Nvidia’s grew its market share by 10.2% to 86% overall, while AMD’s dropped to around 10%.
Originally posted 2022-12-30 14:39:58.