The PC market has been contracting since the start of this year, and in particular, the GPU segment has taken a hit, with both NVIDIA and Intel seeing a decline in market share.
NVIDIA & Intel Witness a Decline in GPU Market Share, Yet AMD Somehow Pulls Off an Increase
The GPU industry has seen difficult times before, with one prominent example being the crypto-mining era, when gamers couldn't get their hands on units at all. Back then, the supply was diverted to professional demand and did not reach consumers at all; today, the situation is much grimmer. According to a JPR report, the GPU segment has started to suffer from memory shortages and supply chain uncertainties, as YoY shipments decline 3.3%, with the notebook segment suffering much more.
The PC and GPU market is in for some rough sailing with tariffs flip-flopping, memory availability short while prices are rising, and a Mideast war being launched. Nvidia is the only supplier that forecasts a strong next quarter, and that was based on AI. We and other forecasters think the PC market could see as much as a -10% decline in 2026.
- JPR
The more interesting aspect of this report is that major GPU manufacturers have seen their market share trimmed, with both Intel and NVIDIA seeing 1.2% and 1.4% declines, respectively, while AMD surprisingly saw a 2.6% growth from last quarter. The report notes that quarterly GPU shipments are now down from their "10-year average of 4.7%", indicating that manufacturers have started to slow production, and we are all aware of the reason for this.
Given how DRAM demand is climbing each week, GPU manufacturers like AMD/NVIDIA have little choice but to shift their allocations from consumers to enterprise, since the latter segment yields much higher returns. General-purpose DRAM products like GDDR7 and LPDDR5 are being diverted to the hyperscaler buildout, which means that for gamers looking to get their hands on new GPU units, it won't be easy at all.
Memory shortages have also disrupted GPU roadmaps initially laid out by the likes of NVIDIA/AMD, and almost all mainstream launches have been pushed ahead by several quarters. The growth prospects of the consumer GPU industry are limited in the short term, which would have a significant effect on retail availability.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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