Recent data from Jon Peddie Research has shown that overall graphics card sales have increased for the third consecutive quarter, with a significant 32% year-on-year increase in Q4 2023 compared to the same period in 2022. However, for AMD, the numbers tell a different story. Despite a slight increase in market share from 12% in Q4 2022 to 19% in Q4 2023, the latest RX 7000 series from AMD is performing poorly compared to its previous GPU families. This is the worst-performing family in terms of market share in over 20 years, indicating a downward trend for AMD in the graphics card market.

Looking back over the past two decades, it is evident that AMD’s market share has been declining steadily. The latest figures show that AMD’s market share has been on a downward trend since the AMD Radeon R200 era, where it dipped from a more competitive 65-35 split with Nvidia to a more lopsided 80-20 split in favor of Nvidia. This decline continued to an all-time low of 86-10 in Q3 2022. The new RX 7000 series does little to change this trend, marking a significant challenge for AMD in the graphics card market.

The fact that the older RX 5000 series performed better in terms of market share than the RX 6000 and RX 7000 series raises questions about AMD’s future strategy in the GPU market. With rumors circulating that AMD may be abandoning the high-end market with its next-gen GPUs, it is clear that the company is facing challenges in maintaining a competitive position. The business case for focusing on a more limited range of GPUs with lower capital expenditure, as seen in the success of the RX 5000 series, may influence AMD’s approach moving forward.

While GPU sales have shown improvement in volume over the past three quarters, reaching 9.5 million units in Q4, the numbers still fall short of the peak sales during the pandemic boom. Sales remain below the levels seen in 2022, where at least 10 million graphics cards were sold per quarter, with some exceeding 12.5 million units. This indicates that the market has not fully recovered from the impact of the pandemic on graphics card sales.

In a broader context, JPR’s data highlights the significant impact of graphics cards on the overall tech industry. Since 2000, over 2.3 billion graphics cards worth $482 billion have been sold, reflecting the importance of GPUs in powering various devices and technologies. This long-term perspective underscores the enduring significance of graphics card sales in the tech market.

Overall, the latest data on graphics card sales in Q4 2023 highlights the challenges facing AMD in maintaining market share and the broader trends shaping the GPU market. As the industry continues to evolve, it will be crucial for companies like AMD to adapt their strategies to remain competitive in the rapidly changing landscape of graphics card sales.


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