GPU Market Shifts: Nvidia Dominates as AMD Faces Challenges
The global market for graphics cards is undergoing significant changes, with Nvidia solidifying its position as the dominant player while AMD experiences a downturn. Recent data from Jon Peddie Research (JPR) reveals a complex landscape shaped by market saturation, pricing pressures and evolving consumer preferences.
Nvidia’s Unprecedented Market Share
In the last quarter of 2025, shipments of discrete graphics cards reached 11.5 million units, a 36% increase compared to the same period in 2024. Despite this overall growth, Nvidia captured an unprecedented 94% of the desktop graphics card market. This marks a historic high for the company, surpassing even previous peaks where it held 94% share alongside a significant presence from AMD and Intel.
Currently, Intel holds 1% of the discrete GPU market, and AMD has fallen to 5%. This represents the worst quarter in history for Radeon graphics cards in terms of relative market share.
AMD’s Declining Performance
AMD’s overall AIB market share decreased by 2.1% from the previous quarter. This decline comes after a period where AMD consistently held over 20% of the market, peaking at nearly 38% in previous years. The shift is attributed, in part, to a decline in the low-end graphics card segment, as integrated graphics in modern CPUs now offer sufficient performance for many users.
Broader GPU Market Dynamics
While Nvidia dominates the discrete GPU market, the overall GPU landscape – including integrated and notebook GPUs – presents a different picture. JPR data shows that AMD holds 18% of the total GPU market, Nvidia has 23%, and Intel leads with 59%. However, even in the broader market, Nvidia is gaining ground, having reduced Intel’s share by seven percentage points year-over-year.
Factors Influencing the Market
Several factors are contributing to these market shifts. JPR cites market saturation following spring and summer product launches, increased tariffs, and rising graphics card prices due to memory shortages as key influences. While Nvidia experienced price increases, particularly for its GeForce cards, AMD and Intel saw more stable or slightly decreasing prices. Despite this, consumers favored Nvidia, even with a less favorable price-to-performance ratio.
The AIB (add-in board) market is expected to have a compound annual growth rate of -5.4% from 2024 to 2028, reaching an installed base of 163 million units by the end of the forecast period. The attach rate of AIBs in desktop PCs increased to 154% in the last quarter.
Latest Technologies and Product Introductions
Nvidia recently introduced the GeForce RTX 5080 Super and RTX 5070, along with the RTX 500 workstation AIB, based on the Blackwell series. AMD launched its RX 9070 XT and RX 9070, utilizing the RDNA 4 architecture. Rumors suggest Intel is developing new AIBs, potentially including a dual-GPU model.
FAQ
Q: What is an AIB?
A: AIB stands for Add-In Board, referring to a discrete graphics card that is added to a computer.
Q: What is the current market share of integrated graphics?
A: Intel currently holds 59% of the overall GPU market, largely due to the prevalence of integrated graphics in its CPUs.
Q: What factors are driving up GPU prices?
A: Increased tariffs and memory shortages are contributing to rising graphics card prices.
Q: What is the expected growth rate of the AIB market?
A: The AIB market is expected to have a compound annual growth rate of -5.4% from 2024 to 2028.
Did you know? The number of GPUs shipped each year consistently exceeds the number of CPUs shipped.
Pro Tip: Consider your specific needs and budget when choosing a graphics card. Integrated graphics may be sufficient for basic tasks, while dedicated GPUs are essential for gaming and demanding applications.
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