Sales of desktop graphics cards increase 28% year-on-year as quarterly GPU shipments drop 10% in Q1: Report

A black, braided HDMI cable plugged into the back of a monitor.
(Image credit: Shutterstock)

Jon Peddie Research reports that the global market of graphics processors for client PCs reached 70 million units in Q1 2024, as shipments increased by 28% year-over-year, but were down 10% quarter-over-quarter. JPR estimates that shipments of desktop discrete GPUs reached 8.1 million, which is higher than in the first quarter of 2023, but is significantly lower than in the previous years.

70 million GPUs shipped in Q1

AMD, Intel, and Nvidia shipped 70 million discrete and integrated GPUs in the first quarter of 2024. Year-over-year GPU shipments rose by 28%, with desktop graphics decreasing by 7% and notebook graphics increasing by 38%. Quarter-over-quarter vise, the situation may not seem that bright due to seaonality as GPU shipments fell by 9.9% from the previous quarter. Specifically, AMD's shipments decreased by 13.6%, Intel's by 9.6%, and Nvidia's by 7.7%, JPR reports.

(Image credit: Jon Peddie Research)

Market shares saw slight shifts: AMD's share decreased by 0.7%, Intel's increased by 0.3%, and Nvidia's increased by 0.4%.  

As for desktop graphics add-in boards (AIBs), including some of the best graphics cards used for gaming, their shipments decreased by 14.8% to 8.1 million, which is higher than in Q1 2023, but is tangibly lower than in the same quarter of 2022, 2021, 2020 and other years as generally sales of discrete desktop GPUs are declining. Perhaps, because shipments of standalone GPUs for notebooks are increasing. Discrete GPU shipments — including GPUs for desktops and laptops — were down 12.4% sequentially for the quarter, slightly below the 10-year average decrease of 11%. 

"Although the first quarter was down, it may be a signal the industry is returning to a normal seasonality," said Dr. Jon Peddie, president of Jon Peddie Research. "Microsoft, AMD, and Intel are promoting the AI PC, and Lenovo says their sales are up because of it." 

(Image credit: Jon Peddie Research)

The overall PC CPU market showed a quarterly decline of 9.4% but a year-over-year increase of 33.3%, based on data from Jon Peddie Research, which is corroborated by findings of Mercury Research.

Nvidia to ship two million datacenter GPUs in 2023: JPR

When it comes to GPU shipments in the coming quarters, both AMD and Nvidia seem to be optimistic, but there is a catch as both companies are optimistic about shipments of datacenter GPUs. For example, AMD expects nothing good about sales of its gaming GPUs this year in general. Yet, the company hopes to sell several billion worth datacenter GPUs. Yet, Jon Peddie Research expects sales of Nvidia's datacenter GPUs for AI and HPC workloads to reach two million units, which means that Nvidia will earn tens of billions of dollars.

"AMD and Nvidia are forecasting an up Q2, so we may have a surprise, and traditional seasonality may be skewed again," Peddie said. "However, AMD and Nvidia's forecast includes the data center. We expect Nvidia, with its leading market share, to ship well over two million data center GPUs in 2024."

Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.

  • NeoMorpheus
    Congrats on a trully professional and unbiased article Anton!.

    Examples, instead of using a photo of the media darling gpu, you used a very neutral angle of one.

    Then on the second paragraph, you sed proper alphabetical order for the company names, instead of what many others do, which is placing their favorite in front of the others.

    You sir, have brought a higher level of professionalism that i havent seen in a while.


    PS. I am not being sarcastic, i am truly impressed.