NVIDIA has established a dominant position in the discrete graphics card market, reaching a staggering 92% share of the add-in board (AIB) GPU market in the first quarter of 2025, according to Jon Peddie Research. This leap represents an 8.5-point gain from the company’s previous market share, reflecting the momentum generated by the launch of its RTX 50 series GPUs early in the quarter. Meanwhile, AMD’s share shrank sharply to 8%—a 7.3-point drop—partly due to the delayed release of its RDNA 4 GPUs late in the quarter. Notably, Intel’s presence in the discrete GPU market essentially vanished, with its share falling to zero. Despite 9.2 million AIB units shipped in the quarter, the sector faces headwinds: desktop CPU shipments dipped to 17.8 million units, and JPR forecasts a 10.3% annual decline for the discrete desktop GPU market between 2024 and 2028.
While NVIDIA expanded its share, the overall PC GPU market, which includes integrated and discrete solutions, contracted by 12% compared to the previous quarter, totaling 68.8 million units shipped. Desktop graphics sales dropped by 16%, with notebook GPUs declining by 10%. This downturn did little to blunt NVIDIA’s ascendancy; its total GPU market share, counting all segments, climbed 3.6 points. AMD’s total share declined by 1.6 points, and Intel lost 2.1 points, reflecting struggles beyond discrete graphics. Intel´s Battlemage Arc GPUs, which launched in the fourth quarter of 2024, have failed to gain traction, primarily constrained by supply issues and lackluster market interest. The firm’s report predicts the installed base of discrete GPUs will grow to 130 million units by the end of 2028, and up to 86% of desktop PCs are expected to feature dedicated graphics cards in that period.
In contrast to the shrinking broader GPU sector, demand for data center GPUs has surged, with shipments rising by 9.6% during the quarter. This growth is attributed to continued investments in artificial intelligence, as enterprises seek more computing power for advanced workloads. Notebook processors played a dominant role in the CPU market, making up 71% of total shipments versus 29% for desktop CPUs. The evolving dynamics underscore NVIDIA’s successful strategy in catering both to consumer graphics needs and the burgeoning market for artificial intelligence computation, while AMD faces challenges catching up, and Intel finds itself nearly absent from the competitive discrete GPU landscape.
