Video card sales skyrocket in the third quarter thanks to the pandemic and the rise in popularity of games

Video card sales skyrocket in the third quarter thanks to the pandemic and the rise in popularity of games

Sales of discrete graphics cards jumped in the third quarter of this year, both compared to the second quarter and compared to the same period last year. This is due to the coronavirus pandemic, but not only, according to a fresh report from the analytical agency Jon Peddie Research.

In the third quarter of last year, there were two manufacturers of graphics processors for discrete graphics cards – AMD and NVIDIA, as well as 54 manufacturers of discrete graphics cards themselves. Some of them produce accelerators with chips from both manufacturers, while others – only one of them. Meanwhile, in the fourth quarter, the third discrete GPU manufacturer, Intel, will appear on the market, but it will not begin to influence the balance of power soon.

In the third quarter of 2020, shipments of discrete graphics cards amounted to 11.5 million units, which is one of the highest quarterly volumes in many years. This is 13.4% more compared to the second quarter of this year, and 9.1% more compared to the third quarter of 2019. The company’s share in the reporting period AMD increased to 23%, and NVIDIA – decreased to 77%. At the same time, in the third quarter of last year, AMD had a more impressive share of 27%.

The total cost of the video cards delivered to the market in the third quarter was $ 4.2 billion. Analysts expect the market for discrete graphics accelerators to reach $ 14.8 billion by the end of the year. They also predict that the market will continue to grow in the future and by 2023 its volume will reach $ 20.3 billion.

If we consider the total shipments of graphics processors, including discrete and integrated, then there is also an increase of 10.3% qoq. The strongest increase in the quarter was the increase in GPU shipments from AMD – by 18.7%, Intel added 7.8%, and NVIDIA – 10.8%. At the same time, AMD’s share grew to 19% and equaled NVIDIA’s share, while Intel reduced its presence to 62%.

The growth in video card sales is observed against the background of a general decline in computer sales. Discrete video cards are in increasing demand due to the growing popularity of computer games. This was facilitated by the popularity of massive multiplayer games and e-sports (which ordinary users also want to join). But of course, it was not without the influence of the coronavirus pandemic – in conditions of self-isolation, people began to turn to games more often as one of the few available ways of entertainment.

It is also noted that shipments of central processing units for PCs in the third quarter did not grow as much as for video cards. Compared to the second quarter, the growth in sales of processors in physical terms was 8.5%, but in annual terms there was a decline of 14.2%. In general, it is noted that more than half of all computers sold in the quarter do not use discrete graphics. In the future, sales of computers will continue to decline, but sales of discrete graphics cards should grow.

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