TECH NEWS – Although the situation seems bleak, the Jensen Huang-led company is dominating the graphics card market.

According to new research by Jon Peddie, fewer graphics cards are being purchased, and most of those purchased are Nvidia products. In the fourth quarter of 2025, AIB shipments decreased by 4.4% compared to the previous quarter. AMD‘s AIB market share decreased by 1.6% in this market compared to the previous quarter. Meanwhile, Intel‘s market share remained unchanged, and Nvidia‘s increased by 1.6%. Thus, Nvidia has taken an additional 1.6% of the market share from AMD in recent months. This brings Nvidia‘s market share to around 94% and AMD‘s to just 5%. This is particularly unfavorable for AMD compared to the end of 2024, when Nvidia held an 84% market share and AMD held a 15% market share.

Since then, Nvidia has released the GeForce RTX 5000 series, and AMD has released the Radeon 9000 series cards. It seems that most PC gamers have chosen a generation and clearly sided with Nvidia. However, this does not mean that graphics card sales have been good overall. Total AIB shipments fell to 11.48 million units compared to the previous quarter. This was lower than the 10-year quarterly average of 10.82%. Compared to the previous year, AIB shipments increased by 36.0%.

While this 36% annual growth may seem significant, it’s important to note that both AMD and Nvidia have launched several new graphics cards since the end of 2024. The quarterly decline is more relevant here. The overall AIB attachment rate for desktop PCs fell to 55% in the quarter, which is a 12.3% decline from the previous quarter. The AIB connection rate refers to the number of graphics cards sold with and/or alongside complete systems. In other words, fewer people bought PCs equipped with graphics cards.

According to new research, the future of desktop graphics card sales is also not looking too bright. The compound annual growth rate for AIBs is expected to be -5.9% between 2024 and 2028, with an estimated installed base of 172 million units by the end of the forecast period. The AIB market, largely supported by gamers, is facing competition from high-performance notebooks and CPUs with integrated graphics chips. Additionally, the market is being affected by fluctuating memory prices and rising prices due to the Trump administration’s tariffs. Potential buyers who would like to, and in some cases need to, replace their PCs and AIBs are holding back. Due to these unstable conditions, the PC and AIB market is expected to decline by nearly 10% in 2026.

People may opt for integrated graphics systems because GPUs have become so expensive. However, Intel Panther Lake and AMD Strix Point/Halo systems are also affected by rising memory costs.

Source: PCGamer, Jon Peddie