AMD Makes Gains in GPU Market in Q4 2024
In the last three months of 2024, the GPU market saw some big changes. AMD, the company that makes graphics cards, got a bigger share of the market while Nvidia, the market leader, faced some challenges. Let’s dive into what happened.
What Happened in the Market?
The number of GPUs shipped in the last quarter of 2024 grew by 4.4% compared to the previous quarter, reaching about 76.9 million units[1]. This growth was mainly due to the demand from data centers, which saw a 13.8% increase[1]. Meanwhile, AMD’s market share grew by about 1% to 1.3%, and Intel’s rose by 0.8% to 1.9%[2][5]. Nvidia, despite being the biggest player, saw its share decrease by 1.8%[2].
Challenges in the Market
The number of GPUs shipped worldwide dropped by 5.4% compared to the same period last year. This is due to some challenges like global political issues and tariffs affecting exports to the U.S.[1]. These issues made the market unstable, causing consumers to either buy GPUs quickly or wait due to possible price increases[1][2]. Nvidia, with its large market presence, struggled to meet the demand, which limited the overall market growth[1][2].
Data Centers: A Bright Spot
Nvidia’s data center segment did really well, making $35.6 billion in revenue in the last quarter of 2024[3]. This success is mainly because more and more data centers want GPUs for AI applications, like training large language models like ChatGPT[3]. The growth of data centers has been crucial for the GPU market’s health.
Gaming and Consumer Segment: A Slowdown
On the other hand, Nvidia’s gaming revenue dropped by 22% from the previous quarter and 11% compared to the same period last year, reaching $2.5 billion[4]. This decline shows a broader trend in the gaming sector, where people are spending less due to economic uncertainties.
Companies Making Moves
As the market changes, companies are making strategic moves to stay competitive. AMD’s increase in market share shows that it’s trying to challenge Nvidia’s dominance. Intel is also expanding its presence with a rise in market share[2][5]. Nvidia, however, is still a leader in innovation, launching its Blackwell architecture and AI-focused products[4].
What’s Next for the GPU Market?
In summary, the GPU market in the last quarter of 2024 was marked by a surge in shipments due to data center demand, while AMD and Intel gained market share. Despite facing challenges, Nvidia remains a strong force, especially in the data center segment. As the market navigates political and economic uncertainties, innovation and smart business moves will be key to success.
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Sources:
– www.tweaktown.com
– www.jonpeddie.com
– www.statista.com
– nvidianews.nvidia.com
– www.digitalengineering247.com