NVIDIA absolutely dominates AIB GPU market in Q124 with 88% leaving AMD with 12%, Intel has 0%

NVIDIA has been dominant for years, but in a new report from analyst firm Jon Peddie Research (JPR) we're seeing the AIB GPU market is absolutely dominated by NVIDIA with 88% market share, AMD with just 12%, leaving Intel with exactly 0% market share.

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JPR's report states that in Q1 2024, 8.7 million units were shipped, down from 9.5 million units in Q4 2023. The market share for desktop discrete GPU suppliers "shifted" in the quarter, with NVIDIA's market share growing since last quarter by 8%, while AMD's share decreased by 7%.

Intel entered the AIB market in Q3 2022, close to two years ago now, with its Arc A770 and Arc A750 graphics cards, but they "remained flat" says JPR as the company "has yet to gain significant traction in the add-in board market". Meanwhile, NVIDIA holds a dominant 88% of the market.

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JPR's quick highlights:

• JPR found that AIB shipments during the quarter decreased from the last quarter by -7.9%, which is above the 10-year average of -10.9% for the first quarter.
• Total AIB shipments increased by 39% this quarter from last year to 8.7 million units and were down from 9.5 million units last quarter.
• AMD's quarter-to-quarter total desktop AIB unit shipments decreased -41% and increased 39% from last year.
• NVIDIA's quarter-to-quarter unit shipments increased 0.9% and increased 45.6% from last year. NVIDIA continues to hold a dominant market share position at 88%.
• AIB shipments from year to year increased by 39% compared to last year.

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Dr. Jon Peddie, president of Jon Peddie Research said: "We and the industry have been hoping for a return to seasonality, which was the hallmark of the PC industry for so many decades. It got disrupted with the 2007-2008 recession and had barely recovered when the crypto craze hit, then along came Covid, followed by the Ukraine war, and it looked like stability was just a faint memory".

"In 2023, we saw four quarters of welcomed growth, and when Q1'24 was down a bit, no one panicked, as it looked like a return to seasonality-Q1 always used to be flat to down. Therefore, one would expect Q2'24, a traditional quarter, to also be down. But, all the vendors are predicting a growth quarter, mostly driven by AI training systems in hyperscalers. Whereas AI trainers use a GPU, the demand for them can steal parts from the gaming segment. So, for Q2, we expect to see a flat to low gaming AIB result and another increase in AI trainer GPU shipments. The new normality is no normality".