AMD loses ground as Nvidia dominates global GPU market: Report

AMD gives up more market share in the graphics card market to Nvidia

In the second quarter of 2021, nearly 123 million units of graphics cards (GPU) were shipped as PC CPU shipments increased by 42% year-over-year.

Overall GPU shipments are expected to reach 3,318 million units at a growth rate of 3.5% between 2020 and 2025. The penetration of discrete GPUs will grow to 25% in the next five years.

Despite this, what will be worrying California-based chipmaker AMD is that their market share has witnessed a constant decline year-on-year. They had 20% of the market in Q2 2020, 19% in Q1 2021 and now sit at 17% in Q2 2021.

A report by Jon Peddie Research, shows that AMDs overall market share decreased by -0.2% from the last quarter while Intel gained 0.1% market share and Nvidia maintained its lead with an increasing share of 0.6%.

Nvidia held 80% of the market in Q2 2020, increased it to 81% in Q1 2021 and now sit at 83% of the overall market in Q2 2021.

The report also noted the impact COVID had on the market with many suppliers noting shortages of components, capacitors, substrates and more. The situation isn't set to improve until the supply chain manages to catch up to the demand and it is expected that supply in the third quarter will still remained constrained. Despite these problems, the GPU shipments increased by 3.4% compared to the last quarter.

AMDs shipments increased by 2.3%, Intel rose 3.6% and Nvidia's managed to ship 3.8% more compared to the last quarter.

Jon Peddie, President of JPR, noted, “Covid has distorted every forecasting model in the universe—even Moore’s Law has been disrupted. Predictions based on short-term conditions have created conflicting and distorted estimates from some quarters that will be proven wrong and embarrassing.”