Nvidia controls 94 percent of the GPU market – a deep dive into Q2 2025 analysis

The second quarter of 2025 proved to be a breakthrough for the tech industry, especially for the GPU market. As the latest analysis from Jon Peddie Research shows, the global graphics card sector experienced a spectacular boom, while Nvidia’s market position reached near total dominance. The report revealed a shipment increase of PC Graphics AIBs to 11.6 million units, a 30 percent rise compared to the first quarter of this year.

Spectacular Expansion of the Global GPU Market

The GPU market in the second half of the first half of 2025 demonstrated undeniable strength. Global shipments of PC graphics cards reached 11.6 million units, nearly a third higher than the previous quarter. The desktop AIB distribution rate rose to 154 percent, meaning that for every processor purchased, more than one and a half graphics cards were sold—an unusual trend for this time of year.

Jon Peddie Research emphasizes that revenue from data center GPUs also increased, with a 4.7 percent growth quarter-over-quarter. This dual expansion suggests that demand for high-performance graphics cards comes from both gamers upgrading their systems and enterprises investing in computing infrastructure.

Nvidia’s Dominance and Marginalization of Competitors in the GPU Market

The biggest beneficiary of this rally was Nvidia, whose market share grew to 94 percent. This is a decisive dominance, leaving little room for rivals. AMD’s share dropped to 6 percent, down from a competitive position, while Intel remained virtually invisible with less than 1 percent share.

In just one quarter, Nvidia increased its share by 2 percent, while AMD lost exactly the same amount. In comparison, a Steam survey from the same period confirms that Nvidia controls nearly 75 percent of the gaming GPU market. Additionally, 7 of the 13 best-selling graphics processors in August were from the Blackwell RTX 5000 series, indicating the immense popularity of Nvidia’s latest offerings.

This dominance in the GPU market is so complete that it leaves little space for competitors’ innovation. AMD, although a reputable company, faces declining interest in its products, and Intel, a new player in this field, has barely managed to establish a foothold.

Price Anomalies and Supply Chain Turmoil

The GPU market in Q2 2025 experienced something unusual for this season—price anomalies. Dr. Jon Peddie, the research firm’s president, explained: mid- and low-end cards became cheaper, while premium cards increased in price. At the same time, most retailers did not have high-end cards in stock—an unusual situation for the second quarter.

This strange phenomenon has specific causes. According to Jon Peddie Research, the anomaly is driven by a combination of two factors: uncertainty related to potential tariffs and speculative purchases by buyers seeking to preempt price increases. Dr. Peddie noted, “We believe that due to tariffs and buyers trying to outpace the market, prices will continue to rise."

Market chaos is further intensified by supply chain reconfigurations, which changed almost weekly. PC manufacturers found themselves in a nearly impossible situation, trying to balance tariff risks with actual production needs. Consumers feel this uncertainty as strongly as the industry, potentially leading to market corrections and further volatility.

New Generation GPU Premiums and Market Outlook

The competitive landscape of the GPU market will intensify in the coming years. The RTX 5000 series Blackwell cards were already released in Q1 2025, but rumors of an accelerated release of the Super version are gaining traction. Some analysts speculate that the Super could debut as early as 2025—a much shorter interval than the 15 months between the original RTX 4090 launch in October 2022 and the RTX 4000 Super release in January 2024.

On the horizon, AMD’s competition is also emerging. UDNA graphics cards are expected to hit the market only at the end of 2026 or early 2027. Although Intel entered this market earlier, releasing its latest generation in December 2024, it still faces difficulties competing with industry leaders.

All these GPU launches have encountered availability issues. Buyers could not purchase devices at suggested retail prices, and this situation persisted into the early third quarter of 2025. Only in the last month of Q2 did mid-range card prices return to normal.

Future of the GPU Market Amid Tariffs and Uncertainty

Despite a 5.2 percent increase in GPU shipments compared to the ten-year average, prospects for the coming years look less optimistic. Jon Peddie Research predicts that the compound annual growth rate of graphics cards from 2024 to 2028 will be negative 5.4 percent. This means that, after a cumulative decline, the installed GPU base by the end of 2028 will reach 163 million units.

The researchers’ pessimism is not due to a lack of innovation—Nvidia, AMD, and Intel are all introducing new technologies. Rather, it stems from concerns over geopolitical instability, especially regarding American tariffs on semiconductor products. Dr. Peddie stated, “The confusion and uncertainty caused by tariffs have not disappeared, making planning for PC component suppliers difficult or even impossible. Consumers are equally confused and worried, which could lead to market corrections.”

The current growth in the GPU market, driven by fears of tariffs and artificial shortages, may only be a temporary peak. If recession predictions materialize, the decline could be triggered by both a decrease in PC gaming and the emergence of processors with integrated powerful graphics—such as AMD’s Strix Halo proposal. The GPU market is entering a phase of significant uncertainty, where technology advances rapidly but long-term prospects remain hazy.