NVIDIA achieves historic dominance in the graphics card market; check the numbers

A NVIDIA has further consolidated its leadership in the global market for dedicated graphics cards for desktop PCs, according to a new report from Jon Peddie Research (JPR). In the third quarter of 2024, the company achieved impressives 90% market shareexpanding its advantage over the competition, which includes options from AMD (Radeon) and Intel (Arc).

Interestingly, the company holds this same percentage in relation to the artificial intelligence chip segment.

Historic milestone for NVIDIA

Previously, NVIDIA held 88% of the desktop graphics card market. However, with an increase of 2 percentage points, the Californian manufacturer reached a historic milestone of 90% participation. This is the largest share ever recorded by the company led by Jensen Huang, consolidating the dominant position of its GeForce cards.

Meanwhile, AMD remains in second place, with around 10% of the market, but lost 2 percentage points compared to the previous quarter. Intel, in turn, is still struggling to gain space. Although its Arc line GPUs are available on the market, its share remains so low that, when rounded, it appears as “0%” in JPR’s sales charts.

Absolute leadership facilitates NVIDIA’s pricing strategies

NVIDIA’s dominance brings challenges for consumers. The lack of more robust competition has kept the prices of GeForce graphics cards at high levels, and the company’s next generation of GPUs, based on the GeForce architecture Blackwell (RTX 5000), this trend should continue.

However, there is hope for those looking for alternatives. AMD plans to launch its new Radeon RX 8000 series, with RDNA 4 architecture, in early 2025. The promise is to offer significant improvements in ray tracing performance and try to compete directly with NVIDIA GPUs, although focusing mainly on the current generation (RTX 4000). NVIDIA’s next RTX 5000 line is expected to maintain its technological leadership.

Delicate moment for the GPU market

Despite NVIDIA’s advance, the GPU market as a whole faced difficulties in the third quarter of 2024. 8.1 million GPUs were sold in the period, a drop of 7.9% compared to the previous year. Compared to the second quarter of 2024, the decline was even more pronounced, with a 14.5% reduction in sales, contrary to the upward trend typical of the third quarter.

Looking to the future, the forecasts are not encouraging. According to Dr. Jon Peddie, founder of JPR, the combination of high tariffs and stagnant wage increases could push the global economy into a recessionary scenario. “We believe the tariffs and lack of corresponding wage increases over the next two years will push the U.S. economy into recession, and other countries will feel the consequences as consumers reduce spending.”stated Peddie.