Sales of graphics cards are declining – Nvidia is increasing its market share

In recent years, the graphics card market has been strong, not least due to increased demand for high-performance graphics circuits for games. At the same time, the mining of cryptocurrencies has been another strong driving factor, which caused poor supply and volatile prices for some time.

The analysis company Jon Peddie Research has taken a closer look at the market for dedicated graphics cards, and in the company’s analysis for the second quarter of the year, it is noted that the demand for graphics circuits is declining. Compared with a year ago, sales fell by 5.7 percent, while sales of desktops increased by 8.8 percent.

The reason is said to be a declining interest in mining cryptocurrencies. This is partly due to specialized hardware which makes standard graphics cards less profitable, and partly due to lower valuations of a number of popular cryptocurrencies. At the same time, the market for gaming computers continues to grow healthily.

When it comes to the ratio in market shares between arch-rivals Nvidia and AMD, Nvidia increases from 65 to 69 percent, while AMD decreased from 35 to 31 percent compared to the first quarter. Looking at the second quarter of 2017, the figures are basically unchanged on an annual basis. In total, graphics cards worth SEK 36 billion were sold during the second quarter of the year.

Finally, the market for gaming computers is considered to be prosperous, as manufacturers invest heavily in products tailored for the purpose. Among other things, e-sports is said to attract more people to computer gaming. It is worth mentioning, however, that gaming computers are a relatively small proportion of all computer sales in general.