Going against the trend in desktop graphics in Q1 2022: shipments boom thanks to falling prices

A new analysis by Jon Peddie Research on the market of dedicated video cardsalso known as an add-in board (AIB), reports an increase in the number of units delivered of 1.4% in the first quarter of 2022 compared to the last three months of 2021 and a jump of 32.2%, to 13.4 million units, compared to the same period a year ago.

In Q1 2022 dedicated video cards were delivered for a total value of $ 8.6 billion, which represents a decline compared to the 12.4 billion dollars recorded in Q4 2021. Why has the turnover dropped in the face of more video cards delivered? Simple, the average prices of video cards have dropped heavily, with several models now close to the so-called “list prices”. Moreover the increase in deliveries goes against the historical trendbut clearly those who have been waiting for more benevolent lists for over a year have seized the ball.

Overall, the AIB market has reached a value of around $ 46 billion in the past four quarters and according to JPR it will hit $ 57 billion by 2025, also in the wake of Intel’s entry. “By virtue of its brand strength and position with OEMs, it will create an increase in units delivered and Total Addressable Market (TAM). The increase will begin to materialize in mid-2023.”

In this market scenario AMD managed to bring its market share to 24% from 20% a year ago, while NVIDIA went from 80% to 75% (an unspecified 1% is missing, but probably got lost in the rounding).

Analysts report for AMD an increase in units delivered from Q4 2021 to Q1 2022 of 6%, while the jump on an annual basis is 43.9%. For NVIDIA, however, things went differently: in the quarterly comparison there was a decrease in units of 0.3%, while the increase on Q1 2021 was 27.4%.

“Despite coinciding unprecedented global disruptions from COVID, supply chain disruptions and shortages, the war in Ukraine and the resulting inflationary spiral, the first quarter of AIB shipments experienced a record year-over-year increase and gain. respectable quarterly, however, the second quarter is usually down and world events will catch up with us, so we don’t expect a very solid second quarter and we anticipate that shipments could decrease by 20% or more, “concluded JPR.