After nearly a year and a half of price increases, the price of graphics cards has finally declined. In this more than a year, the graphics card market has experienced a period of crazy rise, and the price has also fallen into a period of downturn due to excessively high prices. However, research institute Jon Peddie Research (JPR) believes that with the addition of Intel this year, the overall graphics potential market size will be further enlarged, and reach $52.2 billion in 2023.
Jon Peddie Research believes that the global PC GPU market grew to 101 million in the fourth quarter of 2021, and PC CPU shipments fell -21% year-on-year.
Analysts believe that during the period 2020-2025, the overall GPU compound annual growth rate will reach 4.5%, and in the final year reached the installed base of 3.331 billion units. Over the next five years, the penetration of dGPUs in PCs will grow to 42%.
Overall graphics shipments increased 0.8% from the previous quarter: AMD shipments increased 4.7%, Intel shipments rose 0.6%, and Nvidia shipments fell -2.2%.
However, there are also many analysts in the industry who are not optimistic about the future situation. Nvidia shares plunged 5 percent last night due to analysts' downside when Tristan Gerra, an analyst at U.S. investment banking and financial services firm Baird, downgraded its stock rating to neutrality, with the root cause being too much inventory of graphics card chips and the continued fall in prices.
According to Tristan Gerra's report, orders for consumer-grade GPUs have recently begun to be canceled due to a variety of factors, including excess inventory, slowing demand, declining demand for computers, and more.
In addition, the demand in the Chinese market has fallen sharply, and the report points out that the domestic market accounts for 25% to 30% of the consumer GPU chip market, which has a very large impact.
Judging from the analyst's statement, in addition to the factors of the overall market demand decline, an important reason affecting the price of graphics cards at present is the demand of consumers in the domestic market, in the current situation, players do not buy it, and the price of graphics cards will continue to fall.
This will also affect Nvidia's performance in the next quarter, with revenue likely to increase only slightly in the Q2 fiscal quarter ending July this year, and a median decline in the Q3 quarter.