PC market ‘chaos’ causes slowdown in client GPUs

PC graphics shipments grew 2.5 % final quarter, a report by Jon Peddie Associates discovered Monday. Knowledge middle GPUs, nevertheless, grew a median of 145 %. And that’s the state of the market proper now, which analyst Jon Peddie generously described as “chaos.”

Peddie’s report discovered that the PC GPU market grew to 76.6 million items throughout the third quarter of 2025. Over the following 5 years, discrete GPU penetration within the PC market will rise to about 25 % of all PCs, the report discovered.

Peddie’s report centered on the GPU portion of the market, which included each discrete GPUs in addition to these built-in into the systems-on-chip which additionally combine CPUs. In desktop, the mixed development price was 10.7 %, whereas laptops grew by 1.4 %. Total, GPU shipments grew 2.5 % sequentially, and 4.0 % in comparison with a yr in the past.

Peddie’s report solely revealed sure numbers, holding again some for purchasers or for future studies. Some had been merely obscured by different elements. The whole GPU share is an effective instance: Throughout the third quarter of 2025, Intel’s whole PC GPU share was 61 % — mainly consultant of each CPU with built-in graphics Intel shipped. Likewise, AMD’s share was 15 % (down 2 share factors from a yr in the past) however its whole consisted of each built-in and discrete graphics. Nvidia’s share totaled the remaining 24 %.

Mockingly, 2025 started with the launch of the Nvidia GeForce 5000 household, and subsequently considerations concerning the accessible provide and what it might do to pricing. However as 2025 wore on, GPU costs dropped to somewhat-near-MSRP ranges, whereas PC makers began panicking concerning the provide of different elements, particularly DRAM and SSDs. Producers clearly prioritized AI “hyperscaler” firms, and shipped higher-margin silicon like enterprise GPUs to these firms, reasonably than redirecting their efforts towards client GPUs.

Nonetheless, GPU shipments had been beneath the typical 10-year development price of 4.7 % for the PC GPU market, Peddie discovered. Knowledge middle GPU shipments skyrocketed.

“The PC and GPU market has been something however steady or predictable,” mentioned Dr. Jon Peddie, president of Jon Peddie Analysis, in an announcement. “Reminiscence costs rising, uncertainty about tariffs, confusion about what an AI PC is, and blended messages about Home windows 10 have disrupted planning and seasonality. Some may name it chaos.”