Global GPU Shipments Increase by 4.4% Quarter-Over-Quarter; Data Center GPUs Experience Higher Growth

The GPU sector experienced a significant uptick in the last quarter, with total shipments reaching 76.9 million in Q4 2024. This marks a noteworthy period for the graphics processing unit market.

Desktops Face Decline, But Data Center GPUs Drive Overall Growth

According to the latest shipment data shared by Jon Peddie Research, the GPU and CPU markets have shown varying growth trends. The report indicates an overall increase of 4.4% in GPU shipments during the fourth quarter of 2024 compared to the previous quarter.

While the overall GPU market showcases solid growth, the desktop segment experienced a decline of approximately 5.4% year-on-year. This contrasts with the expansion recorded in the data center GPU sector, which played a pivotal role in the overall growth performance. In addition, notebook graphics shipments saw a mild increase of 1% year-on-year, contributing modestly to the market dynamics.

GPU shipments Q4 2024 — Image Credit: JPR

Despite the recent quarter’s positive statistics, a year-over-year analysis reveals an overall decline of 0.9% in GPU shipments, attributed to multiple factors, including specific tariffs imposed on various countries. However, the data center segment has notably surged, reporting a 13.8% quarter-over-quarter growth. Historical comparisons show that the total GPU market share has dipped from an average of 5.4% to 4.4% when comparing Q4 and Q3 shipments over the past decade.

The global political turmoil being created by threatened tariffs against various countries exporting to the US is unsettling the markets, including the stock markets, and causing consumers to either rush to buy to avoid rising prices or not to buy at all,

– JPR

PC GPU Share Q4 2024 — Image Credit: JPR

NVIDIA, despite retaining its position as the leading player in the GPU market, has observed a reduction in market share, now accounting for 15% of total shipments within the PC graphics arena—a decrease of 3.3%.Conversely, competitors Intel and AMD gained marginal improvements, reporting increases of 1.9% and 1.3%, respectively. While NVIDIA continues to dominate across both the client and data center sectors, it faces challenges in meeting the high demand from consumers.

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. As exciting as the AI PC is, it will not be sufficient to motivate consumers to spend ahead.

– JPR

Looking ahead, analysts anticipate that GPUs will experience a compound annual growth rate (CAGR) of 1.4% from 2024 to 2028, ultimately reaching an installed base of approximately 3, 008 million units by the end of this projected period.

Client CPU share Q4 2024 — Image Credit: JPR

Transitioning to the CPU market, the notebook CPU segment marked a slight reduction of 1%, falling from a 70% to 69% market share. In contrast, the desktop CPU segment now holds a 31% share. Combined client CPU shipments totaled around 71.7 million units in Q4 2024, showcasing a robust year-over-year increase of 4.6% and a remarkable 7.8% rise quarter-over-quarter, distinguishing it from the faltering GPU market.

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