GPU sales continue to fall as the PC market moves forward. Nvidia and Co. are still struggling with the consequences of overproduction during the corona pandemic.

John Pebble Research has released GPU market figures for the first quarter of 2023. Those colors turning dark red will not surprise anyone who follows the market closely. PC sales have been declining for several straight quarters, and that’s reflected in PC component numbers.

In the first quarter of 2023, 6.3 million GPUs went over the counter. That is twelve percent less than in the last quarter of 2022, on an annual basis 38 percent less. The attachwhich refers to the presence of an integrated GPU processor in a desktop PC, has again increased slightly by 8 percent since the end of 2022, but is also 21 percent below the previous year’s value.

overproduction

The analysts at John Pebble Research are not talking about a decline, but rather a correction. Demand for GPUs was unusually high in 2021 and early 2022. Cryptominers in particular almost immediately bought the best graphics cards to put their heavy machinery to work. As a result, GPU manufacturers have had to ramp up production to keep up with demand.

Now that crypto mining has been restricted by governments and the demand for PCs is also lower, they are struggling with overstocks. JRR expects the market to return to a normal balance between supply and demand over the course of 2023.

Intel is slowly climbing up

Whoever says GPU says Nvidia, and the manufacturer still dominates the market, although its market share is shrinking from 86 percent to 84 percent. It’s the newcomer to the market, Intel, which is nibbling on Nvidia’s market share with cheaper GPUs, among other things. Intel now has a market share of four percent. ADM took a big slump in 2022 but is now consolidating at 12 percent.