Skip to main content

GPUs just broke a 25-year-old record

The PC graphics card market witnessed notable growth in the fourth quarter of 2023, according to Jon Peddie Research. With shipments climbing by 6% to reach 76.2 million units, this surge marks a significant 24% increase year over year, representing the most substantial gain in over 25 years.

Projections indicate a continued upward trend, with an expected 3.6% annual growth rate from 2024 to 2026, potentially culminating in a total installed base of 5 billion units by the end of 2026, with discrete GPUs comprising 30% of the market.

Quarter to quarter GPU shipment rate as reported by Jon Peddie Research.
Jon Peddie Research

While total GPU shipments enjoyed a robust 20% year-over-year growth, desktop graphics cards, including AIBs, experienced a slight decline of -1%, contrasted by a remarkable 32% increase in notebook GPUs. Market share fluctuations saw AMD and Nvidia slipping by -1.4% and -1.36%, respectively, while Intel made significant gains with a +2.8% increase, reclaiming ground previously ceded to its competitors. Overall, GPU shipments rose by 5.9%, driven primarily by Intel’s impressive +10.5% surge, though AMD and Nvidia experienced minor decreases of -2.9% and -1.5%, respectively.

As per Dr. Jon Peddie, president of Jon Peddie Research, “The fourth quarter is a bit of a bellwether for the following year, and this quarter it was up, suggesting 2024 will be a strong year for the PC. The PC and CPU makers are introducing the so-called AI PC in the hopes of stimulating the market with a new shiny thing. We’ve had AI-capable PCs for over a decade and the issue has been (and still is), where is the AI they will accelerate? It’s coming, and early examples from Adobe, Microsoft, and the CAD suppliers are good examples. But it won’t hit mainstream everyday utilization probably until the end of the year at the earliest. Therefore, we suggest caution in one’s optimism and enthusiasm.”

Get your weekly teardown of the tech behind PC gaming
Check your inbox!

Additionally, the data reveals a notable shift in CPU preferences, with notebook CPUs capturing a dominant 69% shipment share compared to desktop CPUs’ 31%. This trend underscores a buoyant quarter for the PC GPU and CPU segment, outpacing the 10-year average with a 5.9% increase.

Noteworthy highlights include a 6.8% uptick in desktop graphics add-in boards and a robust 9.0% quarter-to-quarter increase in the overall PC CPU market, indicating a flourishing landscape for both components. Amidst this growth, the laptop segment saw a flurry of new and refreshed offerings from AMD and Intel, while Nvidia focused on expanding its discrete GPU options, particularly targeting the high-performance AI GPU sector and introducing entry-level offerings within its Ada lineup, promising further dynamism in the market landscape moving forward.

Editors' Recommendations

Kunal Khullar
A PC hardware enthusiast and casual gamer, Kunal has been in the tech industry for almost a decade contributing to names like…
5 GPUs you should buy instead of the RTX 4070
RTX 4070 logo on a graphics card.

Nvidia's RTX 4070 is one of the best graphics cards you can buy, make no mistake about that. Some recent price drops, combined with excellent 1440p performance and features like DLSS 3.5, make it the go-to GPU for a high-end gaming experience in 2024. There are several other GPUs to keep in mind around this price, however.

The market around for graphics cards that cost $500 to $600 is hotly contested among AMD and Nvidia, and there are some other excellent options to keep in mind when shopping for a new GPU. Here are five GPUs to consider if you're in the market for the RTX 4070.
Nvidia RTX 4070 Super

Read more
What is VSync, and why do you need it?
HP Omen 40L Gaming PC on a table connected to a monitor.

If you’ve been playing PC games for a number of years, you’ve probably heard the term ‘VSync’ tossed around once or twice. Maybe you’ve also heard of G-Sync and FreeSync. For those unaware, VSync is actually short for ‘vertical synchronization’. This is a display feature that is designed to keep your gaming screen running in sync with your computer's GPU. VSync isn’t just important for PC gaming, but it’s one of the most important criteria that goes into a good gaming display.

In this article, we’re going to take a closer look at VSync (and its related technologies) to find out exactly how it works, if you should have it enabled, and how to disable it if you don’t like the optimization. 
What is VSync technology?

Read more
How 8GB VRAM GPUs could be made viable again
Screenshot of full ray tracing in Cyberpunk 2077.

Perhaps there is still some hope for GPUs with low VRAM. According to a new patent published by Microsoft, the company worked out a method that could make ray tracing and path tracing more viable in terms of how much video memory (VRAM) they use. As of right now, without using upscaling techniques, seamless ray tracing requires the use of one of the best graphics cards—but this might finally change if this new method works out as planned.

This new patent, first spotted by Tom's Hardware, describes how Microsoft hopes to reduce the impact of ray tracing on GPU memory. It addresses the level of detail (LOD) philosophy, which is already something that's used in games but not in relation to ray tracing, and plans to use LOD to adjust ray tracing quality dynamically, thus lowering the load that the GPU -- particularly its memory -- has to bear.

Read more