Nvidia hit hardest as graphics card shipments reach two-year low

midian182

Posts: 8,309   +103
Staff member
In a nutshell: It's no secret that Nvidia saw its GPU sales fall drastically in the second quarter of the year, and the scale of the decline compared to the previous quarter was substantial. But it wasn't just Nvidia: Overall discreet desktop graphics card shipments in Q2 hit a two-year low while the CPU industry also suffered.

Jon Peddie Research's (JPR) latest report on the GPU industry is painful reading for all involved, especially Nvidia. The market has been experiencing falling demand this year following a surge in sales during the lockdowns, and the turbulent economy combined with rising inflation is making things worse.

JPR found that there were 84 million GPU shipments in Q2, down 14.9% compared to Q1. Looking at the three GPU companies individually, AMD shipments were down -7.6%, Intel was down -9.8%, and Nvidia's shipments decreased by -25.7%.

The figures were even worse for discreet desktop graphics cards. Shipments in this area were down 22.6% sequentially in the second quarter to around 10.37 million units, the lowest number seen since Q2 2020.

As for overall market shares, Intel with its integrated graphics still led the way, increasing its share by 2% to 60%. Nvidia fell -3.15% to 18%, allowing AMD to overtake it with a 1.1% rise to 20%.

The CPU market also had a bad quarter. Processor shipments were down -7% quarter-on-quarter and 37.7% year-on-year . Tablets, however, saw their shipments remain flat.

"This quarter had overall negative results for the GPU vendors, compared to the last quarter," said Jon Peddie, president of JPR. "Global events such as the continued war in Ukraine, Russia's manipulation of gas supplies to Western Europe, and the subsequent nervousness those events create have put a dampener on Europe's economy; the UK is in recession with high inflation. Forecasting has never been more challenging, and as a result, our forecast and others' will get revised frequently as new data appears."

It seems the industry isn't confident of a turnaround in the current quarter; most of the semiconductor vendors are guiding down for Q3 at an average of -2.81%.

Nvidia's latest financial results showed its gaming revenue was down by more than one billion dollars year-on-year, so the recent report's findings come as little surprise. The company has been frantically trying to clear out its excess of RTX 3000 stock before Lovelace arrives by dropping the cards' prices, but it reportedly hasn't worked as well as expected. It seems team green's solution is to reduce them even further in September. Whether that will work could depend on how much cheaper Nvidia makes its GPUs.

Permalink to story.

 

Thatsdisgusting

Posts: 78   +114
And all these news whilst 5% eth miners, in anticipation of "the merge", flooded ETC and plunged difficulty up to x2 of that shitfork...
 

Uncle Al

Posts: 9,293   +8,464
More market fluctuation of little concern unless it becomes a trend. Hopefully they aren't asleep at the switch! I don't particularly care for them BUT the more companies out there competing is always good for the consumer.
 

wiyosaya

Posts: 8,241   +7,582
IMO, this is good news especially with new generations of CPUs/GPUs due to release in the near future. Any of these companies, would be insane to the price the new generations as outrageously as the previous generations since the state of the market is so bad ATM. With outrageous pricing, they are asking for poor sales.

It might just be a good time to upgrade. I guess that we will all have to wait and see how the new GPUs are priced. However, I note that AMD is pricing the 7950X at $699 which is $100 less than the 5950X was priced at launch. IMO, AMD is very wise to set the launch price of the 7950X $100 less than the previous generation.
 

antiproduct

Posts: 248   +305
Let's hope this trend continues now that Etherium has moved away from GPU mining. Hope this will make graphics card manufacturers remember who their core demographic has been for years and years.
 

Neatfeatguy

Posts: 1,012   +1,847
Still hard to be excited for a new GPU when they're priced above MSRP for the mid-ranged family, not everyone wants to spend that $1K+ for a 3080Ti, 3090 or 3090Ti are going for.

Folks that might still be holding out would like to see those 3080 10/12GB be in that $500-600 range, the 3070/3070Ti in that $400-450 range and everything else below at least $50-100 under MSRP before they might consider picking up 1-2 year old GPU since Lovelace is just around the corner.
 

emmzo

Posts: 757   +1,147
Folks that might still be holding out would like to see those 3080 10/12GB be in that $500-600 range, the 3070/3070Ti in that $400-450 range and everything else below at least $50-100 under MSRP before they might consider picking up 1-2 year old GPU since Lovelace is just around the corner.
You're right, but that should have been months ago. Now, I feel it's just stupid to pay that much for old tech. Their troubles are beginning to pile and that could only mean better deals for us on next gen or they'll be severely screwed. I also hope they choke on huge stocks of 3000s series, because of their greed of keeping prices so high.
 

neeyik

Posts: 2,225   +2,686
Staff member
Given that the market share chart includes every possible GPU (discrete AIB, discrete laptop, workstation, data, scientific, console, and integrated-into-CPU), it will be interesting to see what impact the forthcoming Ryzen 7000 series has on AMD's figures, given that they'll all have a GPU in the IO chiplet.

Folks may also want to check out some earlier share figures, for comparison to the ones in the news article:

JPR_gpu_data.png
 

Neatfeatguy

Posts: 1,012   +1,847
You're right, but that should have been months ago. Now, I feel it's just stupid to pay that much for old tech. Their troubles are beginning to pile and that could only mean better deals for us on next gen or they'll be severely screwed. I also hope they choke on huge stocks of 3000s series, because of their greed of keeping prices so high.
I also think they held back inventory to help keep prices inflated....but that's just me. And because of that, it's now biting them in the ***.
 

GoldenGoat

Posts: 97   +134
I have a 20 series card and not looking to replace it right now. These cards cost too much to buy a new one all the time. Prices are way too high for me.
 

umbala

Posts: 768   +1,474
"Nvidia hit hardest as graphics card shipments reach two-year low"

So they were riding the crypto-BS wave for two years and made record profits. But now that crypto crapped out of course shipments are going to drop drastically. Two-year low, pfft. Call me when it's a five-year low, then we'll talk.
 

umbala

Posts: 768   +1,474
Every week I'm seeing these articles about video cards and how shipments are low, demand is low, prices are bottoming out, now is the time to buy, etc. Are these tech sites getting paid to try to push this nonsense on us?

I'm looking at all the major vendors where I live (NewEgg, Best Buy, Canada Computers, etc.) and NONE of them have decent prices. They're all either slightly above MSRP or way above MSRP, depending on which cards I'm looking at.

Yes, prices have dropped considerably compared to last year and even earlier this year, but that means absolutely nothing to me since they were so inflated it was ridiculous. Where are all these great deals and prices all the tech sites are crowing about? Dropping prices from 2x MSRP to just above MSRP on 2 year old cards is supposed to be a great deal? Keep dreaming.
 

Mr Majestyk

Posts: 1,441   +1,344
Sales were always artificially high due to the crypto scum. Now crypto is in the toilet GPU sales are back to normal but they've now been hit by the global recession hammer and people waiting for Ampere and RDNA3 benchmarks.

Any way couldn't be more happy Nvidia are getting smashed, a loathsome company under Huang. And they are still price gouging in Australia.
 

QuaZulu

Posts: 126   +102
TechSpot Elite
"The company has been frantically trying to clear out its excess of RTX 3000 stock"

What a load of nonsense! Prices are still inflated, just not as much as they were. Nvidia would love us all to buy the line, though, so that when Lovelace does arrive and MSRPs match or are just a bit higher than the 3000 series we all imagine what a great deal we're getting. The trope is just preparing us to have sunshine blown up..."everywhere."
 

Gezzer

Posts: 302   +152
Here in Canada prices are still 50US or so over MSRP for the higher tiered cards. So yeah, I'm going to be replacing my RTX 2080S tomorrow...