Intel may still reign supreme in the realm of PC processors, but its position in the discrete graphics card market is rapidly fading. According to Jon Peddie Research (JPR), Intel has shockingly fallen to zero percent market share in discrete graphics, down from a mere 2 percent a year ago. This shift highlights a significant downturn for a company that has historically been a player in the broader graphics landscape.
The latest report reveals that PC graphics card shipments surged to 9.5 million units in the second quarter of 2024, marking a 9 percent increase from the first quarter. This rise is particularly striking against a backdrop of a 10-year average decline of 7.1 percent during this same quarter. JPR attributes this growth to the recent launch of new graphics cards, signaling potential optimism in a market that many have deemed stagnant.
However, the real narrative revolves around the competition between AMD and Nvidia, with the latter holding a commanding 88 percent of the market share—up from 80 percent last year. The remaining 12 percent now belongs exclusively to AMD, further solidifying the perception of a two-horse race in the discrete graphics segment. JPR’s president, Jon Peddie, noted the unexpected resilience of the add-in board market, which continues to defy predictions of impending decline. Despite four consecutive quarters of growth, overall shipments are still lower than two years ago, indicating ongoing volatility.
Intel’s predicament is underscored by the irony that the company has recently launched its Lunar Lake mobile processor, featuring a new Xe2 graphics core that it intends to transform into a discrete GPU known as Battlemage. However, this project has already faced delays, with an initial release window projected for 2023. Meanwhile, Nvidia is gearing up for the launch of its highly anticipated GeForce 5000 series, further complicating Intel’s efforts to reclaim market presence. While JPR analysts anticipate stable prices for graphics cards until these next-gen GPUs arrive, Intel’s road to recovery in the discrete graphics market will likely require extraordinary efforts to compete against its established rivals.