A study by Jon Peddie Research confirms that the graphics card market experienced a significant drop in the second quarter of the year. Taking a look at the numbers included in this report, we see that sales of graphics solutions, both dedicated and integrated, fell by 14.9% quarter over quartera bad result that has been propitiated by different factors.

Undoubtedly one of the most important keys is found in the drop in sales experienced by the PC sector, and also in the reduction of orders by the large companies in the sector, which already have large quantities of accumulated stockand they are having some trouble outputting everything they have stored.

Taking a look at the impact this fall has had on the big three in the GPU sector, we see that AMD sales fell by 7.6%, Intel by 9.8% and NVIDIA by 25.7%. It is important to bear in mind that although those in green have been the ones that have suffered the greatest drop, they are also the ones with the largest market share, and the ones that put the most new generation graphics cards on the market.

If we focus on dedicated graphics cards for desktop computers we find a sequential drop of 22.6% in the second quarter of the year, which brings us to total sales of 10.37 million units. Such a low number had not been registered since the second quarter of 2020, but the truth is that deep down it is understandable, since in addition to the two keys that we have seen we must take into account that:

• The second quarter of the year is usually an unfavorable date in general, since it is far from the Christmas campaign and before the back-to-school season.
• The current economy is not going through its best moment due to inflation and the uncertainty generated by the war in Ukraine, the end of which still seems to be far away.
• NVIDIA and AMD are working on their next generation of graphics cards, and this makes many users prefer to wait instead of buying a GeForce RTX 30 or Radeon RX 6000.

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