The latest data from the Peddmeister Massive indicates a positive trend in graphics card sales, with a third consecutive quarter of growth. The figures comparing Q4 2023 to the same period in 2022 reveal a significant 32% year-on-year increase. However, amidst this overall growth, AMD seems to be struggling to maintain its market share.

For AMD, the numbers paint a grim picture. Despite a slight increase in market share from 12% in Q4 2022 to 19% in Q4 2023, the latest RX 7000 series of GPUs is considered the worst-performing family in terms of market share in over 20 years. This decline is particularly distressing when compared to previous generations like the RX 6000, which boasted higher market share numbers.

Over the past two decades, AMD’s market share has experienced a downward trajectory, with Nvidia consistently dominating the market. The period during the GeForce 900 and Radeon R200 era saw a significant decline in AMD’s share, with a shift from a 65-35 split in Nvidia’s favor to as low as 86-10. This downward trend has persisted, even with the introduction of new GPU families like the RX 7000.

Given the challenges faced by AMD in maintaining market share, there have been rumors about the company potentially avoiding the high-end market with its future GPU releases. The success of the more limited range RX 5000 series in achieving over 30% market share suggests that a similar strategy might be viable for AMD. By focusing on a smaller range of graphics cards, the company could reduce capital expenditure while potentially maintaining its market share.

While GPU sales have seen a consistent increase for three quarters, overall unit volumes still remain lower than during the peak of the pandemic boom. The latest data shows that 9.5 million units were sold in Q4, lower than the 10 million units sold per quarter in previous quarters. Despite the positive growth, the market has yet to reach pre-pandemic levels in terms of sales volume.

In a broader context, JPR’s data reveals that since 2000, over 2.3 billion graphics cards totaling $482 billion have been sold. This significant amount highlights the enduring demand for graphics processing power in various industries and applications.

While the overall GPU market is experiencing growth, AMD’s struggle to maintain market share underscores the competitive landscape in the industry. By analyzing historical trends and considering future strategies, AMD can potentially navigate these challenges and solidify its position in the GPU market.

Hardware

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