Intel's shipments in the first quarter of 2024 are negligible.
A recent report from the research firm Jon Peddie Research (JPR) shows that Nvidia's market share in the desktop GPU market has soared to 88%, AMD only accounts for 12%, and Intel's share is negligible.
The JPR report points out that the sales volume of desktop discrete graphics cards declined in the first quarter of 2024 on a quarterly basis, but there was an improvement on a yearly basis. However, the performance of the two leading independent graphics processor suppliers, Nvidia and AMD, is quite different. Despite the decline in market demand, Nvidia's sales volume increased, and its market share rose to 88%, while AMD's shipments decreased, plummeting to 12%.
Nvidia consolidated its dominant position with a market share of 88%, growing by 8% from the previous quarter. The total shipments of Nvidia's desktop GPUs reached 7.66 million units, higher than 7.60 million units in the fourth quarter of 2023 and approximately 5.26 million units in the first quarter of 2023.
In contrast, AMD's market share decreased by 7% from the previous quarter, but its annual market share slightly increased. The company's shipments decreased by 41% from the previous quarter but increased by 39% year-on-year. AMD's shipments of desktop discrete GPUs in the first quarter of 2024 were about 1.04 million units, lower than 1.81 million units in the previous quarter but higher than 750,000 units in the same period last year.
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Intel entered the AIB market in the third quarter of 2022 with the Arc A770 and A750 models and continues to compete with established competitors such as Nvidia and AMD for a foothold. According to Jon Peddie Research, Intel's shipments in the first quarter of 2024 are negligible.Shipments in the first quarter are typically flat or decline compared to the previous quarter. This quarter saw a decline of 7.9% in shipments. The downturn in shipments was anticipated, indicating that after several years of turbulence due to the pandemic, the graphics card market is returning to seasonality.
The industry has long hoped for a return to seasonality, which has been a hallmark of the PC industry for decades. The economic recession of 2007-2008 disrupted the industry, and it barely recovered when the cryptocurrency boom hit, followed by the COVID-19 pandemic, and then the war, making "stability" just a vague memory.
Jon Peddie Research states that in 2023, we saw encouraging growth across four quarters, and when there was a slight decline in the first quarter of 2024, no one panicked, as it seemed like a return to seasonality—the first quarter has always been flat or declining. Therefore, it can be expected that the second quarter of 2024, a traditional quarter, will also decline.
All suppliers forecast growth this quarter, driven mainly by hyperscale AI training systems. Although AI trainers use GPUs, the demand for them may take away some market share from the gaming sector. Thus, for the second quarter, Jon Peddie Research expects the gaming AIB results to be flat or decline, while AI trainer GPU shipments will increase again.
Jon Peddie Research analyst C. Robert Dow added, "The first quarter AIB market showed some positive signs, as the attachment rate increased by 6% compared to the fourth quarter of '23 and by 10% compared to the same period last year. Prices also remained stable this quarter, which is good for consumers."
PC GPU Report: AMD down 13.6% sequentially, Intel down 9.6%, NVIDIA down 7.7%
Not long ago, market research firm Jon Peddie Research released a report stating that in the first quarter of 2024, global PC GPU shipments reached 70 million units, up 28% year-on-year and down 9.9% sequentially. Among them, AMD decreased by 13.6% sequentially, Intel decreased by 9.6% sequentially, and NVIDIA decreased by 7.7% sequentially.
Compared to the same period last year, PC GPU shipments increased by 28% year-on-year, with desktop GPU shipments down by 7%, while notebook GPU shipments increased by 38%.In terms of market share, AMD's overall market share has decreased by 0.7 percentage points compared to the previous quarter, Intel's market share has increased by 0.3 percentage points, and Nvidia's market share has increased by 0.4 percentage points.
In the first quarter of 2024, the overall GPU attachment rate (including integrated and discrete GPUs, desktops, laptops, and workstations) in personal computers was 113%, a decrease of 0.6 percentage points from the previous quarter; desktop graphics card AIBs decreased by 14.8% compared to the previous quarter.
Intel Xe2 GPU Launch
Recently, at the ITT 2024 conference, Intel shattered all rumors about the cancellation or postponement of the GPU and Arc lineup. Tom Petersen gave a wonderful presentation around the next-generation Xe2 architecture. Starting from the details, Intel simplifies everything, no longer using the LP, LPG, HP, and HPG naming scheme, but simply calling its next-generation product line Xe2. Internally, these chips will still use these code names, but they will no longer be used for clients.
The Intel Xe2 is officially launched and will be applied to the Lunar Lake CPU and the next-generation Arc discrete graphics card lineup codenamed "Battlemage."
Part of the goal of Intel Xe2 is to improve utilization, improve work distribution, and reduce software overhead. Xe2 is a design from scratch, fixing several major issues with the Xe "Alchemist" GPU. At the beginning, Intel showed the audience a significant gain of up to 12.5 times with an IP performance efficiency chart, which was astonishing.
Intel stated that the Xe2 architecture, like the Xe architecture, is highly scalable, which will promote its integration into low-power mobile SoCs such as Lunar Lake, and into high-end Arc graphics cards with independent options to be launched later.
