GPU shipments rebounded in 2023Q2, AMD has the most significant quarterly growth

In recent times, the demand for PCs has waned, leading to a decrease in shipments for both CPUs and GPUs as more consumers pivoted towards integrated graphics. However, in a surprising turn of events, the second quarter of 2023 witnessed an unexpected resurgence in GPU shipments, perhaps heralding a renaissance for the PC industry.

Recently, Jon Peddie Research (JPR) unveiled their latest report on GPU market metrics, revealing that the Q2 2023 shipments for GPUs employed in PCs—including both integrated and discrete graphics cards—stood at 61.6 million, marking a year-on-year decline of 27%. Desktops and laptops experienced respective declines of 36% and 23%. Yet, when juxtaposed with the previous quarter, GPU shipments exhibited a sequential growth of 12.4%. Notably, AMD’s figures surged conspicuously by 22.9%, Intel saw an increase of 11.7%, while Nvidia witnessed a growth of 7.5%. Furthermore, shipments of standalone desktop GPUs experienced a modest uptick of 2.9%.

While the second quarter of each year is traditionally perceived as an off-peak season, where a dip in shipments is commonplace, this year’s scenario was distinct, boasting a notable escalation. Data from OEMs and retail channels highlighted that the volume of GPUs and embedded devices purchased surpassed typical shipment quantities, suggesting that inventory depletion was nearing completion and demand was gradually revitalizing.

During Q2 2023, the overall connectivity rate of GPUs and PCs—including integrated and discrete graphics cards, desktops, laptops, and workstations—was at 115%, marking a quarter-on-quarter decrease of 2.6%. Viewing the trajectory from a broader lens, Jon Peddie Research anticipates a 3.7% compound annual growth rate for GPUs between 2022 and 2026, projecting a culmination of approximately 2.998 billion units installed by the end of 2026. Over the ensuing five years, the penetration rate of standalone graphics cards in PCs is expected to rise to 32%.

Although the surge in shipments is commendable news, it’s vital to recognize that since 2010, the entirety of the PC and GPU markets has predominantly been on a declining continuum. Even if the market experiences a brief revival, returning to its zenith from a decade prior remains an ambitious endeavor.