NVIDIA's AIB GPU market share grew to 90% in Q3 2024 as the overall market declined slightly owing to seasonality.
PC discrete GPUs reached 8.1 million units in Q3 2024, down from 9.5 million units in Q2 2024, NVIDIA now controls 90% of the market share
Total GPU shipments going down in the third quarter is a rare sight, but it just happened. Despite the GPUs being available in the market abundantly from various manufacturers and despite the usual trend in the third quarter, the GPU shipments have been reduced by around -14.5%.
Usually, in the third quarter, people purchase more PC hardware, and general tech items are sold at discounted prices due to the holiday season. This is why, in the last 10 years, GPU shipments have always increased, accounting for an average 7.9% shipment increase compared to the second quarter.
Q3 2024 remains the only other time after Q3 2018 when this trend was defied. As Jon Peddie Research firm reported, GPU shipments in Q3 2024 have come down to 8.1 million from 9.5 million in Q2 2024. Unlike a few years ago, the GPU shipments didn't cross the 10 million mark, but surprisingly, the total PC CPU shipments worldwide have increased drastically.
The total CPU shipments increased to 20.1 million units in Q3 2024, which is a solid 42.2% quarter-over-quarter increase. Still, the year-on-year shipments decreased by -3.4%. This also influenced the AIB attach rate in desktop PCs, resulting in a decrease of 141% and a -26.9% from the last quarter i.e., Q2 2024.
Coming back to the GPUs, NVIDIA still holds the highest GPU share in the market and has increased by 2% quarter-over-quarter in Q3 2024. Now NVIDIA has an 8% higher share than Q3 2023, reducing the overall Intel and AMD share to just 0 and 10% respectively in Q3 2024.
Dr. Jon Peddie, the President of the JPR firm said,
Our long-term CAGR forecast is gloomy based on the expected impact of significantly higher end-user prices due to the projected tariffs,
We think the tariffs and lack of matching wage increases in the next two years will drive the US economy into a recession, and other nations will feel the implications as consumers pull back their spending.
One key point to note here is that the overall GPU shipments are likely to plummet in the coming years. JPR forecasts AIBs will have a compound annual growth rate of -6.0 % from 2024 to 2028, resulting in a total of 119 million units at the end of 2028.
