The pandemic-inspired GPU boom – when everyone was either building a gaming PC or mining crypto – is well and truly over. Sales figures for Q1 of 2023 show a massive 38.2% decline in the number of Nvidia, AMD, and Intel GPUs sold compared to the same period last year. So why is no one buying graphics cards?
According to a new report by Jon Peddie Research, it’s all to do with supply chain issues. There’s actually too many last generation cards on the market, so retailers are trying to shift them as soon as possible. In fact, research analyst, C. Robert Dow, states that the slump in GPU sales is due to “oversupply in the market caused by pandemic-era supply chain inconsistencies and orders.”
If you’re a graphics card manufacturer or batter for team blue, red, or green, there’s some cause for optimism. The report gave a rosier outlook for the rest of the year, with Dow predicting that the release of Nvidia’s RTX 4060 series, “traditionally Nvidia’s most popular with gamers”, will help boost sales.
That said, with the RTX 4060 Ti’s lukewarm reception from critics, including our own Nvidia GeForce RTX 4060 Ti 8GB review, can we really count on these cards to be the savior of the graphics card market?
Despite the GPU market continuing its downward trajectory in 2023, there are plenty of great pixel pushers to get your hands on! With Nvidia RTX 4000 series and AMD RX 7000 series cards coming thick and fast, check out our guide to the best graphics card to help you suss out the competition.
FAQs
PC GPU vendor shipment share worldwide 2009-2023, by quarter
As of the fourth quarter of 2023, Intel was the biggest vendor in the PC GPU market worldwide, occupying 67 percent of the market. AMD occupied 15 percent of the market, while Nvidia took a market share of 18 percent.
Why people buy Nvidia instead of AMD? ›
If you care about ray tracing, streaming, video production, or professional applications, Nvidia graphics cards are the better choice. Its cards' ray tracing performance is leagues ahead of AMD's, and more Nvidia cards are compatible with 3D modeling software than AMD cards.
Are Nvidia or AMD GPUs better? ›
Shop AMD GPUs
Nvidia's dedicated RTX technology makes it the best choice for gamers in terms of pure performance, while AMD Radeon offers better value for money, making it more suitable for gamers on a budget.
Why are GPUs so hard to get? ›
Throw scalpers into the mix, who capitalized on demand from gamers and cryptocurrency miners, and it's easy to see why GPUs were so expensive. Simply put, graphics cards were hard to find because the demand was much higher than the supply. Now, with higher stock levels and lower demand, it's a whole different story.
Will AMD overtake Nvidia? ›
AMD is still a promising semiconductor play, but its broader diversification, slower growth rates, and lower market share should prevent it from becoming the "next Nvidia" over the next few years.
Will AMD ever beat Nvidia? ›
While AMD likely has a pricing edge over Nvidia, it is unlikely to ever lead the market, Moorhead believes. "Nvidia would have to screw up big time somehow for AMD to ever be a No. 1," Moorhead said. "At the same time, AMD would have to hit on all cylinders."
Why is no one buying AMD GPUs? ›
Sales figures for Q1 of 2023 show a massive 38.2% decline in the number of Nvidia, AMD, and Intel GPUs sold compared to the same period last year. So why is no one buying graphics cards? According to a new report by Jon Peddie Research, it's all to do with supply chain issues.
Why Apple use AMD instead of Nvidia? ›
Because the AMD Radeon and FirePro Graphics Processing Units from Advanced Micro Devices, Inc. (Formerly Analog Technologies, Inc. (ATI), which AMD bought some years ago) have better performance in a range of GPU Computation applications that Apple's customers care about.
Which is a better buy AMD or Nvidia? ›
The significant difference highlights the fact that AMD is at an earlier stage in its AI journey and could have more room for growth in the short term. As a result, AMD is a screaming buy over Nvidia right now.
Can AMD compete with Nvidia in AI? ›
The new products could help AMD better compete with Nvidia and Intel amid the AI boom. The company announced the AMD Ryzen PRO 8040 Series and the AMD Ryzen PRO 8000 Series desktop processors, capable of running AI workloads locally on a PC. Lenovo and HP are set to use the new AMD processors in their AI PC products.
While Nvidia's growth is eye-popping, AMD is coming from a large revenue base of $23.6 billion in 2022 compared to Nvidia's $26.9 billion. Still, Nvidia's growth trajectory positions it to pull far ahead of AMD in total revenue by 2024.
Why can't AMD do ray tracing? ›
Yeah, AMD has ray tracing, but it is very very weak compared to Nvidia, so that means the game will most likely only support one type of ray traced effect rather than a full array of them. Using FSR instead of DLSS is almost as bad. Might go from a definite buy to a total pass.
Why is GPU failing? ›
These problems are particularly crucial for gaming, graphic design, and video editing tasks. Overheating: Excessive heat can damage the GPU and other card components. Driver issues: Outdated or corrupt drivers can cause performance problems. Physical damage: Mishandling or impacts can damage the card.
Who is buying all the Nvidia GPUs? ›
Meta, Microsoft, Amazon, and Google have all been developing their own AI chips, but their ongoing purchases of Nvidia's GPUs suggest it could still be years before they produce comparable chips. Instead, their custom chips will probably work in tandem with Nvidia's GPUs to process AI tasks for the foreseeable future.
Do GPUs get worse with age? ›
Frequent heavy usage inevitably contributes to faster degradation of GPUs over time. Demanding workloads like high FPS gaming, VR, cryptocurrency mining, 3D rendering and video editing generate substantial heat that can rapidly damage chips and components compared to lighter loads.
Who is the market leader in GPU? ›
Nvidia has 80% control over the entire global GPU semiconductor chip market. In its latest earnings report, Nvidia reported a revenue of $22.1 billion for the fourth quarter of fiscal year 2024, which is up 265% since last year.
Is Nvidia a bigger company than AMD? ›
While Nvidia's growth is eye-popping, AMD is coming from a large revenue base of $23.6 billion in 2022 compared to Nvidia's $26.9 billion. Still, Nvidia's growth trajectory positions it to pull far ahead of AMD in total revenue by 2024.
Which company has the most GPUs? ›
What is the biggest GPU company? Nvidia is the largest GPU by market cap. The company is valued at more than $1 trillion.
What is the market cap of AMD vs Nvidia? ›
It's worth noting that even though AMD has a market cap of $289 billion and Nvidia's tops $2.2 trillion, Nvidia is still relatively cheaper. Let's delve into how we came to that conclusion and whether one day AMD will become the better buy.
