Nvidia Sets New Record with 94% GPU Market Share

The GPU market is experiencing a transformative moment. The second half of 2025 brought spectacular results that solidify Nvidia’s position as the clear leader in the graphics processor industry. According to the Jon Peddie Research report, global AIB (Add-in Board) shipments reached 11.6 million units, a 30% quarter-over-quarter increase.

Nvidia’s Domination Reaches New Heights

The Jon Peddie Research report reveals the extent of the market dominance. Nvidia controls 94% of the GPU market, while AMD holds just 6%, and Intel remains out of the game with 0% market share. This is not a random fluctuation – the green team’s dominance is steadily strengthening. In the previous quarter, Nvidia’s share increased by 2 percentage points, while AMD lost an equivalent amount.

Jon Peddie Research President Dr. Jon Peddie notes several factors driving this trend. He points out that preemptive purchases by consumers worried about tariff hikes accelerated stock turnover in the GPU market. Desktop AIB distribution increased by 154%, meaning that for every processor sold, 1.54 graphics cards are now sold. This indicates that, beyond traditional computer purchases, many users are investing in upgrading older systems.

Price Turbulence and Tariff Speculation

The GPU market is not immune to economic pressures. Prices for mid-range and budget cards have decreased, while premium segments have seen price increases. Paradoxically, most retailers do not have stock of high-end cards – a rare phenomenon for the second quarter of the year.

Dr. Peddie comments on this situation: “Uncertainty caused by tariff prospects has led to confusion among manufacturers and sellers. The supply chain is changing configuration almost weekly. Consumers are equally confused, which could lead to market correction.”

The report shows that GPU shipments are 5.2% higher than the average of the past decade, indicating renewed interest from gamers and professionals. Blackwell RTX 5000 series cards dominated the bestseller list – seven out of thirteen top models in August came from this product line.

Competition and Projected Decline

While Nvidia celebrates its successes, competitors are fighting for survival. AMD shipments increased by 27%, but this is from a very low base. Intel’s growth of 2% is also unimpressive. In the desktop CPU market, quarterly growth was 21.6%, though year-over-year there was a 4.4% decline.

The outlook for the coming years is not promising for the entire GPU market. Jon Peddie Research estimates that from 2024 to 2028, the annual growth rate of AIB shipments will be -5.4%. This suggests that the current growth is most likely a temporary effect driven by tariff concerns and artificially induced shortages.

Product portfolio changes among competitors are happening more slowly than expected. AMD plans to introduce UDNA cards only at the end of 2026 or early 2027. Intel was the first to launch a new generation of GPUs in December 2024. Nvidia, remaining quick, announced the RTX 5000 in the first quarter, and rumors of an unofficial Super variant suggest a possible release later this year.

The Future of the GPU Market Is Uncertain

The sector’s dynamics indicate that a key challenge for the GPU market will be maintaining growth momentum after the tariff effect subsides. The emergence of processors with advanced integrated graphics, such as AMD’s Strix Halo, could fragment the traditional GPU market.

Consumers have shown willingness to upgrade their systems, but this is more a short-term impulse than a long-term trend. The GPU market is awaiting a redefinition of its position within the computer ecosystem. Jon Peddie Research forecasts that the shrinking GPU market may be inevitable unless new applications—such as AI or advanced visualization—dominate sectors beyond gaming.