Graphics card sales plummet, and the fact that mining has been knocked out only partly explains it

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A week ago Colette Kress, NVIDIA’s CFO, stated that its most ambitious graphics card, the GeForce RTX 4090, was in huge demand. According to this executive, more than 100,000 units have been sold so far, a figure that is especially impressive if we bear in mind that the price of this graphics card places it out of reach for most users.

However, we have strong reasons to accept that this data only gives us a partial view of the current state of the graphics hardware industry. The consultant Jon Peddie Research (JPR) has collected in a very detailed report the figures that describe how the GPU market has behaved during the third quarter of this year, and its conclusion is blunt: we are facing the biggest drop in sales in two consecutive quarters since the crisis that started in 2008.

The GPU market is in low hours

According to JPR During the third quarter of this year, AMD, Intel and NVIDIA distributed a number of graphics processors that were 25.1% lower than in the same period of 2021. On the other hand, if we compare the figures for the second and third quarters of 2022, the decrease of the units distributed during the latter amounts to 10.3%. This downward trend given the current economic climate and instability paints a bleak short-term future on the horizon.

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PC GPU distribution decreased by 15.43% during Q3 2022 compared to the same period last year

The figures that JPR has collected encompass all types of GPUs, although desktop graphics cards and laptop solutions have not fared as well. PC GPU distribution decreased by 15.43% during the third quarter of 2022 compared to the same period last year, while notebook graphics processor distribution decreased by 30% in this same context.

However, according to JPR, the main players in this market are not facing this scenario with the same strength. AMD’s share fell over the last quarter by 8.5%, and NVIDIA’s by 1.87%. Intel’s, however, increased by 10.3% This is largely due to the fact that this company is backed by a very strong position in the ecosystem of integrators linked to the PC market.

If we stick to the GPUs distributed by these three companies during the third quarter compared to the second quarter of 2022, the figures are, if possible, even more alarming. The distribution of AMD graphics processors fell by 47.6%; that of NVIDIA GPUs, by 19.7%, and, finally, Intel distributed 4.7% more graphics chips in this same period. It is evident that the figure of this last company does not manage to make up the global trend of this market.

A perfect storm is brewing. The causes that explain the contraction phase that the GPU market is going through are multiple.

There is no doubt that it is taking place a perfect storm. The causes that explain the contraction phase that the GPU market is going through are multiple. One of them is the almost total extinction of cryptocurrency mining, but the companies involved also blame Western policies that limit China’s specific weight in this market and the sanctions that the US government has promoted against this same country.

It is also reasonable to accept that consumers are saturated by the technology purchases we have made during the pandemic years, and, above all, by the incessant upward trend in graphics hardware prices. According to JPR, inflation and the economic recession are also damaging this market, and nothing seems to indicate that this trend is going to change in the short term. The most surprising thing is that this storm has intensified right during the quarter that is traditionally the strongest of the year. That’s how things are.

More information: JPR

A week ago Colette Kress, NVIDIA’s CFO, stated that its most ambitious graphics card, the GeForce RTX 4090, was in…

A week ago Colette Kress, NVIDIA’s CFO, stated that its most ambitious graphics card, the GeForce RTX 4090, was in…

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