Discrete GPU shipments are declining, while integrated GPU shipments are growing

Jon Peddie Research has already summed up the results of the third quarter, focusing on the dynamics of changes in the supply of discrete and integrated graphics solutions, as well as those containing the latest central processing units for PCs. It was noted that the demand for discrete graphics is declining, while integrated GPUs continue to conquer the market.

Image Source: AMD

According to the source, a total of 73.6 million discrete and integrated GPUs were shipped in the third quarter, up 3.4% sequentially and up 2.4% year over year. Notebook GPUs increased shipments by 5.9%, while desktop GPUs saw a 5.6% decline. While quarterly GPU shipments grew sequentially, the third quarter’s growth rate was below the previous ten-year seasonal average of 6.2%.

At the same time, shipments of central processing units for PCs increased sequentially by 12% during the period to 66.5 million units, and in annual comparison they grew by 7.8%. AMD managed to increase CPU shipments by 15%, while Intel decreased them by 12% in a sequential comparison.

Image source: Jon Peddie Research

In the GPU segment as a whole, AMD managed to sequentially increase its market share from 16 to 17%, but remained flat year-over-year. Intel’s market share increased 1.1% sequentially, while Nvidia weakened its position by 1.9%, although it still holds 65% of the PC graphics market. These statistics include both integrated and discrete graphics solutions, but Nvidia currently supplies mainly the latter for the PC segment. Apparently, the weakening of its position is precisely caused by a reduction in the supply of discrete graphics. In total, no more than 7.1 million discrete GPUs were shipped in the third quarter, which is noticeably lower than the results of both last year and 2022. Laptop GPUs accounted for 30% of the market in the third quarter, up 6 percentage points from the second quarter of this year.

Image source: Jon Peddie Research

Since a single system can contain more than one GPU at the same time, the degree of their specific concentration in the PC segment at the end of the third quarter decreased by 9.5 percentage points to 111%. The local surge in demand was due to the release of new processors from Intel and AMD, as noted by the authors of the study. If new US President Donald Trump introduces promised tariffs, the PC market could face a recession, according to analysts.