AMD and Nvidia reportedly lose market share in Q3 2022 as GPU shipments suffer massive 25% year-over-year decline

Jon Peddie Research (JPR) has published its latest report on the PC market in Q3 2022. The analysis suggests that Q3 numbers, a quarter in which the PC market traditionally picks up the pace, have failed to meet expectations. For instance, CPU shipments have reportedly decreased by 19% compared to Q3 2021.

That said, it is not the CPU but the GPU market that has been affected the most by the current downturn in the PC space.

GPU market during Q3 2022

Per JPR’s report, although the total PC GPU shipments were 75.5 million in Q3’22 and are expected to grow at an annual rate of 2.8% for a total of 3,138 million units by 2026, overall GPU sales contracted by 25.1% year-over-year. The slowdown in shipments was most experienced by the laptop segment which saw a reduction of 30% while the desktop graphics sales were down 15.43%. JPR notes that this is “the biggest drop since the 2009 recession”.

Moving on, both Nvidia and AMD lost market share in Q3’22 with a decrease of 8.5% and 1.87% respectively. Intel, on the other hand, saw an addition of 10.3% to its overall quarterly market share. So, Intel dominated the Q3’22 PC GPU landscape with a 72% market share while Nvidia and AMD come in 2^nd and 3^rd with 16% and 12% respectively.

Finally, both AMD and Nvidia shipped fewer GPUs in Q3’22 vs Q2’22 as the companies experienced a massive 47.6% and 19.7% reduction in shipments respectively. Intel, once again, managed to stay in the positive with a 4.7% increase in this regard.

CPU market during Q3 2022

Similar to the graphics market, CPU shipments also shrunk by 5.7% quarter-over-quarter. The total CPU units moved, including desktop and notebook CPU sales, for Q3’22 clocked in at 66 million, 4 million units less than Q2’22, and 15 million lower than Q3’21.

Specifically, desktop CPU shipments increased by 10% while processor sales for use in notebooks saw a 10% decrease.

Jon Peddie, the president of JPR, posits that, per PC suppliers, the collapse of crypto mining, China’s zero-COVID policy that affects manufacturing, US sanctions on China, soaring inflation resulting in price bumps by AIBs, and future uncertainty could be the possible reasons for the sluggish PC market in Q3’22.

Finally, Peddie thinks that “the feeling is Q4 shipments will be down, but ASPs will be up, supply will be fine, and everyone will have a happy holiday”.

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