Nvidia’s shortages are limiting PC GPU market growth, looming tariffs also impacting sales

DGIX

March 5, 2025

Over 78 million PC GPUs have been shipped in the last quarter of 2024, resulting in a 6.2% growth over the previous quarter. According to Jon Peddie Research, year-to-year GPU shipments across all platforms increased by 1% — broken down into a 2% increase in laptop GPU and a 3% decrease in desktop graphics card sales. The researchers predicted that the overall GPU market will shrink annually by 1% from 2024 to 2028, with only 15% of systems sporting a discrete GPU by 2030. The firm cited Nvidia shortages and looming tariffs as market pain points.

Dr. Jon Peddie, the president of the team behind this report, said that Nvidia’s shortage hindered the growth of GPU shipments. “Nvidia, with the largest market share, had difficulty meeting demand and, as a result of their size and influence, kept the GPU market from growing as much as it might have. Although that will lead them and AMD into Q1 with a strong backlog, the tariffs will offset further gains for most, if not all, of 2025.”

However, it seems that Nvidia still has trouble answering the demand for high-end (and even mid-range) GPUs, with almost all of its newly launched graphics cards — from the RTX 5090 all the way down to the RTX 5070 Ti — reportedly out-of-stock across retailers globally. Even Intel Arc B580 stock is hard to come by months after its release; we could only hope that the new AMD Radeon RX 9070 XT and non-XT graphics cards are available in large numbers everywhere.

The three major manufacturers — Nvidia, AMD, and Intel — share the GPU market, with Team Green owning 65% of the market, followed by AMD at 18%, and Intel at 16% (these values include the integrated GPUs found inside CPUs). AMD and Intel slightly grew from the last quarter, with the two companies gaining 1% and 0.8% from Nvidia. This tracks with the developments in the GPU space late last year, as Nvidia warned of a shortage in the fourth quarter of 2024 as it wound down production of 40-series GPUs to prepare for the upcoming Blackwell GPUs. This was compounded by the arrival of the much-anticipated Intel Arc B580 GPU, which provided gamers with a graphics card that offered decent performance at an affordable price.

The report also made one surprising prediction: the contraction of the discrete GPU market. As we get more powerful graphics cards, one would expect more people to be hungry to get their hands on them. However, the increasing prices brought by paper launches, scalpers, and tariffs are probably turning off a lot of potential buyers.

Source link