AMD Makes Gains in GPU Market as Shipments Jump in Q4 2024
The last quarter of 2024 brought big changes to the GPU (Graphics Processing Unit) market. AMD, the company that makes computer chips, grew stronger while Nvidia, the market leader, faced some problems. More GPUs were shipped than ever before, thanks to the demand from data centers and clever moves by the big companies.
What Happened in the GPU Market?
In the last quarter of 2024, the number of GPUs shipped grew by 4.4% compared to the previous quarter, reaching about 76.9 million units[1]. This growth was mainly due to the data centers, which saw a 13.8% increase in GPU shipments[1]. Meanwhile, AMD’s share of the market grew by about 1% to 1.3%, and Intel’s rose by 0.8% to 1.9%[2][5]. Nvidia, the biggest player, saw its share decrease by 1.8%[2].
Why Did the Market Change?
The number of GPUs shipped worldwide fell by 5.4% compared to the same time last year, showing the challenges the industry faced[1]. Global problems and tariffs on exports to the U.S. made the market unstable, causing people to either buy GPUs quickly or wait due to possible price increases[1][2]. Nvidia, with its large market presence, couldn’t meet the demand, which limited the overall market growth[1][2].
Data Centers Boosted the Market
Nvidia’s data center segment did very well, making $35.6 billion in revenue in the last quarter of 2024[3]. This success is mainly because more GPUs are needed for AI (Artificial Intelligence) applications, like training big language models like ChatGPT[3]. The growth of data centers helped keep the GPU market healthy.
Gaming and Consumer Segment Slowed Down
On the other hand, Nvidia’s gaming revenue fell by 22% from the previous quarter and 11% compared to the same time last year, reaching $2.5 billion[4]. People spent less on gaming due to economic uncertainties, which affected the gaming sector as a whole.
What’s Next for the GPU Market?
As the market keeps changing, companies are making smart moves to stay ahead. AMD’s growth shows it’s trying to challenge Nvidia’s leading position. Intel is also expanding its presence[2][5]. Nvidia, though still a leader, is innovating with new products like the Blackwell architecture and AI-focused ones[4].
What Does This Mean for the Future?
In short, the GPU market in the last quarter of 2024 was busy with more shipments due to data center demand. AMD and Intel grew stronger, while Nvidia faced challenges. Despite the problems, Nvidia is still a strong force, especially in data centers. As the market deals with political and economic uncertainties, innovation and smart strategies will be crucial for success.
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Sources:
– Tweaktown
– Jon Peddie Research
– Statista
– Nvidia News
– Digital Engineering 24/7
