10 Jun

AMD Gains GPU Market Share from Intel

WRITTEN BY Puja Tayal

Overall GPU shipments

The overall semiconductor market saw a significant decline in demand in the first quarter. Among the worst hit were memory and GPU (graphics processing unit) chip makers.

According to data from JPR (Jon Peddie Research), PC GPU shipments fell 10.7% year-over-year and 18.6% sequentially in the first quarter, which is a seasonally weak quarter for GPUs. However, JPR noted that the 18.6% sequential decline was almost double the ten-year average seasonal decline of 9.09%.

AMD Gains GPU Market Share from Intel

This more-than-seasonal decline was largely driven by a 22.5% sequential decline in Intel’s (INTC) GPU shipments, as it suffered from a CPU (central processing unit) supply shortage, which reduced the shipments of integrated GPUs that went inside these CPUs. In Intel’s case, the problem was on the supply side.

However, Advanced Micro Devices’ (AMD) and NVIDIA’s GPU shipments also fell 4.6% and 12.7%, respectively, on a sequential basis in the first quarter due to issues on the demand front. They lowered their shipments to help the channel clear excess GPU inventory created because of the end of cryptocurrency demand.

The JPR data includes shipments of integrated GPUs that go inside PCs and notebooks and discrete GPUs, which are purchased separately as add-in board. The data showed that overall PC market shipments fell 14.44%, whereas discrete GPU shipments rose 0.34% sequentially in the first quarter.

AMD gains GPU market share

Among the three players, AMD reported the lowest GPU shipment decline of 4.6% sequentially, as its discrete GPU shipments rose 21% in the first quarter. Its discrete GPU shipments were driven by the launch of its 7 nm (nanometer) Radeon Vega VII GPU, which helped it increase its overall GPU market share by 2.3% from the previous quarter.

In the integrated GPU space, AMD benefited from CPU shortages at Intel, which saw some PC original equipment manufacturers move to AMD’s integrated GPUs in their new PC and laptop designs. This supply shortage saw Intel’s overall GPU market share fall 3.4% from the last quarter.

AMD’s GPU strategy

AMD is looking to leverage its GPU technology across various applications by making semi-custom models for PCs, notebooks, data centers, game consoles, and cloud gaming, In June, AMD announced a GPU licensing deal with Samsung that would bring its GPUs inside smartphones, opening up a new market for AMD GPUs.

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