In a historic turn, Nvidia (NVDA, Financial) has once again taken the top spot, with a whopping 90% of the global GPU market share in Q3 2024. This dominance, says Jon Peddie Research (JPR) mascot, is a difficult environment for AMD and Intel competitors. Five years ago, AMD was a minor player in the space, and its share shrunk to just 10%, while Intel has scarcely budged.
Though GPU shipments overall have fallen by 7.9% year over year and 14.5% quarter over quarter, NVIDIA has laid down markers as the leading force in the GPU sector. The fall in graphics has been caused by consumer anticipation for next gen GPUs, namely NVIDIA’s RTX 50 series, AMD’s RX 8000 series, which have been tipped to rekindle the market.
The main problem currently for AMD is that it has been losing ground since the acquisition of the ATI in 2006. The company could have to pivot swiftly if it goes any further down this track, analysts warn, as NVIDIA’s innovations and manufacturing capabilities are jockeying ahead of its competitors.
And it’s a critical moment for AMD (AMD, Financial) and Intel (INTC, Financial) to try to redefine strategy in the GPU market, because the market’s near monopoly raises questions about innovation and pricing.
This article first appeared on GuruFocus.
