Q1 2024 AIB Market: NVIDIA Secures 88% Share!

According to the latest report from Jon Peddie Research, global shipments of add-in boards (AIBs) for graphics cards reached 8.7 million units in Q1 2024. This represents a 7.9% decrease from the previous quarter's 9.5 million units, but a significant 39.2% increase year-over-year.

NVIDIA has further solidified its dominance in the market, capturing 88% of the share, up from the prior quarter. This gain has come at the expense of AMD, whose market share has fallen by 7 percentage points to 12%. Intel’s market share remains below 1%, reflecting limited progress since the launch of its Arc A770 and A750 graphics cards in the third quarter of 2022.

The report highlights varied performance among the major players in Q1 2024: AMD’s desktop graphics card shipments fell by 41% quarter-over-quarter but increased by 39% year-over-year. In contrast, NVIDIA experienced a 0.9% quarterly increase and a substantial 45.6% year-over-year growth in shipments.

Dr. Jon Peddie, President of Jon Peddie Research, commented on the ongoing volatility in the GPU market since the 2007 economic recession. Factors such as the cryptocurrency boom and the COVID-19 pandemic have disrupted traditional market patterns. Historically, GPU sales tend to dip in the first quarter, but the growing influence of artificial intelligence (AI) has shifted this trend.

Looking ahead to the second quarter of 2024, while traditional expectations might suggest a decline, all major suppliers are predicting growth driven by large-scale AI training systems. Although these AI systems heavily rely on GPUs, this increased demand might affect the gaming sector. Jon Peddie Research forecasts that the gaming AIB market will remain flat or decline, while GPU shipments for AI training systems are expected to rise again.