Intel, a long-standing powerhouse in the PC gaming industry due to its dominance in PC processors with integrated graphics, has recently faced a significant setback in the discrete graphics card market. According to a report from analyst firm Jon Peddie Research, the second quarter of 2024 saw an increase in PC graphics card shipments to 9.5 million units, marking a 9 percent rise from the previous quarter. This unexpected surge defied the 10-year average, which typically reflects a 7.1 percent decline in the second quarter. The boost in shipments was largely attributed to the introduction of new cards in the first quarter.
The dynamics of the discrete graphics card market have been shifting, with a fierce competition unfolding between industry giants AMD, Nvidia, and Intel. In this battle for supremacy, Intel has unfortunately been sidelined, now holding a negligible 0% share of the PC graphics card market. This decline for Intel began at the start of the year, following a drop from a meager 2% market share just a year ago. Consequently, the landscape of the PC graphics card market has evolved into a two-horse race, with Nvidia firmly in the lead with an 88% market share.
Nvidia’s dominance in the market has grown significantly over the past year, with the company now controlling nearly the entirety of the PC graphics card market. AMD, on the other hand, has managed to secure the remaining 12% share that Nvidia does not command. This consolidation of power underscores the competitive landscape within the industry, highlighting the challenges faced by Intel in regaining market share against such formidable opponents.
Despite the prevailing market trends, Jon Peddie, President of JPR, remains optimistic about the future of the add-in board market. He acknowledges the resilience of the market, which has defied predictions of decline for decades. With recent quarters showing growth in shipments, there is a sense of cautious optimism about the market’s trajectory. However, overall shipments remain lower compared to two years ago, indicating a need for sustained innovation and product development to drive future growth.
The emergence of new technologies and products further complicates the competitive landscape in the PC graphics card market. Intel’s Lunar Lake mobile processor, featuring the Xe2 graphics core, holds the potential to disrupt the market with a discrete GPU known as Battlemage. However, delays in the release of Battlemage have raised concerns about Intel’s ability to compete effectively against upcoming offerings from Nvidia, such as the eagerly awaited GeForce 5000 series (“Blackwell”).
Looking ahead, JPR analyst C. Robert Dow anticipates that PC graphics card prices will remain stable until the release of next-generation GPUs from Nvidia and AMD. The competition between these industry giants is expected to intensify, posing a significant challenge for Intel as it seeks to regain market share in a highly competitive environment. The road ahead for Intel in the PC graphics card market appears fraught with obstacles, requiring a strategic and innovative approach to carve out a niche in the face of formidable competition.
