Global GPU shipments increased 4.4% quarter-over-quarter with data center GPUs showing accelerated growth relative to consumer segments.

According to Jon Peddie Research, the GPU market reached 76.9 million shipments in Q4 2024, with overall GPU shipments increasing by 4.4% compared to Q3 2024. However, this growth masks divergent trends across market segments. Desktop GPU shipments declined by 5.4% year-on-year, while notebook graphics shipments increased by 1% year-on-year. The data center GPU market has been the primary driver of growth, flourishing by 13.8% quarter-over-quarter. Overall year-on-year GPU shipments declined by 0.9%, and the total GPU market share fell from an average of 5.4% to 4.4% when comparing Q4 to Q3 shipments.

Tariff concerns are significantly impacting market dynamics. Global political uncertainty surrounding threatened tariffs against various countries exporting to the US is unsettling both the markets and stock markets, causing consumers either to rush purchases to avoid rising prices or to refrain from buying altogether. This tariff pressure is expected to offset further gains for most, if not all, of 2025.

In terms of vendor performance, NVIDIA has lost market share in the PC graphics sphere, now standing at 15% of total GPU shipments, a 3.3% decrease. Intel and AMD have improved slightly, gaining 1.9% and 1.3% respectively. Despite this decline, NVIDIA remains the largest player in the overall GPU market, including both the client and data center markets, though it has struggled to meet demand. Nvidia's difficulty in meeting demand, given its size and influence, has constrained overall GPU market growth. Looking ahead, GPUs are forecasted to have a compound annual growth rate of 1.4% from 2024 to 2028, reaching an installed base of 3,008 million units by the end of the period.

The CPU market shows stronger performance than the GPU sector. The notebook CPU market share declined by 1%, moving from 70% to 69%, while the desktop CPU market now holds a 31% share. Combined CPU shipments for the client market reached 71.7 million units in the fourth quarter of 2024. Unlike the GPU market, the PC CPU market experienced a robust 4.6% year-over-year increase and a 7.8% quarter-over-quarter increase, demonstrating resilience despite the broader economic headwinds affecting the semiconductor industry.