A study by Jon Peddie Research confirms that the graphics card market experienced a significant decline in the second quarter of the year. Looking at the numbers presented in this report, we see that sales of graphics solutions, both dedicated and integrated, decreased by 14.9% quarter-on-quarter.a poor result that was supported by various factors.

One of the most important keys is undoubtedly found in the decline in sales experienced by the PC sector, and also in the reduction of orders by large companies in the industry that already have large quantities accumulated stockand they have some problems outputting everything they have stored.

When we look at the impact this fall has had on the big three in the GPU sector, we see that AMD sales down 7.6%, Intel down 9.8% and NVIDIA down 25.7%. It’s important to keep in mind that although the ones in green have suffered the biggest decline, they are also the ones with the biggest market share and the ones that have launched the most new generation graphics cards.

If we focus on dedicated graphics cards for desktop computers we will find sequential decline of 22.6% in the second quarter of the year, bringing us to total sales of 10.37 million units. Such a low number has not been registered since the second quarter of 2020, but the truth is that deep down it is understandable because, apart from the two keys we have seen, we have to consider that:

• The second quarter of the year is usually a generally unfavorable date, as it is far from the Christmas campaign and before the start of the school season.
• The current economy is not experiencing the best of times due to inflation and uncertainty caused by the war in Ukraine, the end of which seems far away.
• NVIDIA and AMD are working on their next generation of graphics cards, so many users would rather wait than buy a GeForce RTX 30 or Radeon RX 6000.

Despite all the moves that have taken place, we see NVIDIA gaining 2% market share in the second quarter. AMD gained 1% market share and the only one to lose share was Intel as it saw a 3% decline. We’ll see how the situation develops, but I think it is quite likely that there will be a recovery by the end of this year sales of graphics cards and components in general, driven by the holiday season and the launch of new generation CPUs and GPUs from Intel, AMD and NVIDIA.