The recent data from Jon Peddie Research reveals a positive trend in graphics card sales, with an increase for the third consecutive quarter. The most notable improvement is the 32% year-on-year growth when comparing Q4 2023 to the same period in 2022. However, while overall sales are on the rise, the numbers paint a grim picture for AMD.
Despite the positive trend in graphics card sales, AMD is facing challenges in improving its market share. The latest GPU family from AMD is reported to be its worst-performing in over 20 years in terms of market impact. The market share for AMD increased marginally from 12% in Q4 2022 to 19% in Q4 2023, which is still considered mediocre compared to its competitors.
Looking back at historical data, it is evident that AMD has been struggling to compete with Nvidia in the graphics card market. The RX 7000 series from AMD has lower market share compared to its predecessors, indicating a downward trend for the company. The market share split between AMD and Nvidia has been steadily shifting in Nvidia’s favor, with AMD hitting an all-time low of 10% in Q3 2022.
The success of AMD’s previous RX 5000 series in market share could explain the company’s strategy of focusing on a more limited range of graphics cards in the future. By achieving over 30% market share with a restricted lineup, AMD may be looking to optimize its capital expenditure while maintaining a competitive position in the market. This approach could potentially offer a strong business case for the company.
According to JPR’s data, GPU sales saw a 6% increase in Q4 compared to the previous quarter, reaching 9.5 million units. While this marks three consecutive quarters of improved sales volumes, the numbers are still lower than the peak sales observed during the pandemic boom. The data indicates that there is still room for growth in the graphics card market.
In a broader context, JPR’s data highlights the significant impact of graphics card sales in the technology industry. Since the year 2000, over 2.3 billion graphics cards worth $482 billion have been sold, emphasizing the importance of these components in powering various digital devices. Despite the challenges faced by AMD, the overall market for graphics cards remains robust and continues to drive innovation in the industry.
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