AMD Gains Ground on Nvidia in GPU Market in Q4 2024
The end of 2024 brought big changes to the GPU (Graphics Processing Unit) market. AMD, the company known for its computer chips, made some serious gains while Nvidia, the market leader, faced some tough times. Let’s dive into what happened.
Welcome to the New GPU Market
In the last quarter of 2024, the global GPU market grew by 4.4% compared to the previous quarter. That’s about 76.9 million units shipped![1] Most of this growth came from data centers, which saw a 13.8% increase in shipments.[1]
Now, let’s talk market share. AMD’s share went up by about 1% to 1.3% from the previous quarter. Intel also saw a rise, with its share increasing by 0.8% to 1.9%.[2][5] But Nvidia, the biggest player, saw its share drop by 1.8%.[2]
What’s Going On in the Market?
The year-on-year decrease in GPU shipments by 5.4% shows that the market had some challenges.[1] Global political issues and tariffs made it hard for companies to sell their products, especially in the U.S.[1][2] This made consumers either rush to buy GPUs or wait because they were worried about price increases.[1][2] Nvidia, being the largest player, had a hard time meeting the demand, which slowed down the market’s growth.[1][2]
Data Centers: The Bright Spot
Despite the challenges, Nvidia’s data center segment did really well, bringing in $35.6 billion in revenue during Q4 2024.[3] This is because more and more data centers are using GPUs for tasks like training big language models, like ChatGPT.[3] The growth in data centers helped keep the GPU market healthy.
Gaming and Consumer Segment: A Slower Pace
On the other hand, Nvidia’s gaming revenue dropped by 22% from the previous quarter and 11% from the year before, reaching $2.5 billion.[4] This shows that people were spending less on gaming due to economic uncertainties.
Companies Make Their Moves
As the market changes, companies are doing what they can to stay ahead. AMD’s increase in market share shows that they’re trying to challenge Nvidia’s dominance. Intel is also expanding its presence.[2][5] Nvidia, however, is still leading the way with its new Blackwell architecture and AI-focused products.[4]
Looking Ahead: A Changing Landscape
In summary, the GPU market in Q4 2024 was all about data center demand driving up shipments while AMD and Intel gained market share. Despite the challenges, Nvidia is still the dominant force, especially in data centers. As the market faces political and economic uncertainties, innovation and smart strategies will be key to success.
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Sources:
– Tweaktown
– Jon Peddie Research
– Statista
– Nvidia News
– Digital Engineering 24/7