Jon Peddie Research has released its latest State of the GPU Market report, and it's good news for the industry as a whole, and for Nvidia in particular. Add-in board shipments grew 27% last quarter, boosting Team Green's total share to 94%.

JPR writes that the global PC-based graphics AIB market will reach 11.6 million units in the second quarter of 2025, a nearly 30% increase from the previous quarter. Meanwhile, data center GPU shipments also saw growth, increasing by 4.7% from the previous quarter.

As expected, Nvidia's dominance in the sector continues to grow, while AMD is at a disadvantage. In the second quarter, the red team's share fell by 2% to just 6%, while Nvidia's share increased by the same amount to 94%. Intel's market share remained at 0.0%.

The latest Steam survey reveals Nvidia's dominance in the graphics card market, with nearly 75% market share. Despite the criticism surrounding its graphics cards, seven of the 13 best-performing GPUs in August were from the Blackwell RTX 5000 series.

JPR also revealed that GPU shipments were 5.2% above the 10-year average.

JPR President Dr. Jon Peddie stated that prices for mid-range and entry-level cards declined, while high-end AIB prices increased, leaving most retail suppliers out of stock, a highly unusual second quarter.

He explained, "We believe prices are expected to continue to rise due to tariffs and buyers trying to get ahead of the curve."

The report also noted that the overall AIB attach rate for desktop PCs (the ratio of cards sold to desktop PCs shipped) increased by 2.3% during the quarter, reaching 154%.

Market performance

CPU Shipment Growth

The desktop CPU market grew 21.6% quarter-over-quarter, but declined 4.4% year-over-year. AMD shipments grew 27%, while Intel's grew 2%.

GPU Pricing Anomalies

Prices for mid-range and entry-level AIBs declined, while high-end AIBs saw price increases and were often out of stock. The unusual second quarter may be due to tariffs and forward purchasing, which led to continued price fluctuations.

Trends and Outlook

Tariffs have a significant impact

Tariffs have caused market volatility, frequent supply chain adjustments, and dampened consumer confidence, potentially leading to market corrections and increased volatility.

Future Growth Under Pressure

The AIB compound annual growth rate is projected to be -5.4% from 2024 to 2028, with the installed base reaching 163 million. Despite strong player upgrade intentions, with the install rate rising to 154%, tariffs and policy uncertainty may make this growth a short-term phenomenon.

Source: Content compiled from techspot

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