The first quarter of 2024 has seen a significant shift in the graphics add-in board (AIB) market, according to the latest report by Jon Peddie Research (JPR). Despite a quarterly decline in shipments, the market has experienced notable year-over-year growth, indicating a potential return to traditional market patterns disrupted by recent global events.
In Q1 2024, the AIB market saw shipments reach 8.7 million units, a 7.9% decrease compared to the previous quarter. This decline, however, is less severe than the 10-year average first-quarter drop of 10.9%. When compared to the same period last year, shipments increased by a remarkable 39.2%, signaling a recovery from the turbulence caused by the pandemic, cryptocurrency boom, and geopolitical conflicts.
Nvidia emerged as a key player in this shifting landscape, increasing its market share by 8% from the last quarter and maintaining a dominant 88% market share. In contrast, AMD saw its market share decrease by 7% quarter-to-quarter despite a 39% year-over-year increase in shipments. Intel’s entry into the AIB market with its Arc series has yet to gain significant traction, with its market share remaining flat.
The report highlights that the first quarter of the year is typically characterized by flat or declining shipments compared to the previous quarter. This pattern appears to be re-emerging after years of disruption caused by various economic and global factors, suggesting a return to seasonality. However, the growing demand for GPUs in the AI training systems means that dynamics of the traditional graphics add-in board market are changing rapidly, leading Dr Peddie to conclude: “Whereas AI trainers use a GPU, the demand for them can steal parts from the gaming segment. So, for Q2, we expect to see a flat to low gaming AIB result and another increase in AI trainer GPU shipments. The new normality is no normality.”
Long time technology industry fan here in Taiwan.
