Intel knocked out of the PC graphics card market

The PC graphics card market is now a battleground between two giants: NVIDIA and AMD. According to the latest report from research firm Jon Peddie Research (JPR), it seems that Intel has been eliminated from the computer graphics card market competition. This is a big change that shows that Intel, although it still dominates the PC processor market with integrated graphics, has lost its position in the discrete graphics card market. A big setback for companies that have had hopes to compete with NVIDIA and AMD in the realm of PC graphics cards.

PC graphics card market development in the second quarter of 2024

According to a JPR report, PC graphics card delivery increased to 9.5 million units in the second quarter of 2024. This is an increase of 9 percent from the first quarter, which is a surprise for analysts. Because, the average of the last 10 years showed a decline of 7.1 percent in the second quarter. The increase was attributed to the launch of a new graphics card in the first quarter, which was the driving force behind the increase in sales.

However, the more interesting story is about the competition between AMD, NVIDIA, and Intel in the discrete graphics card market. In this competition, Intel now dominates the zero percent market share of PC graphics cards, which effectively removes them from the competition.

NVIDIA’s Dominance in the Graphics Card Market

The PC graphics card market is now a duel between two large companies, with NVIDIA which is in a dominant position. NVIDIA controls 88 percent of the market share, far away from AMD which only controls 12 percent. Previously, in 2023, Nvidia controlled 80 percent of the market, while the rest was controlled by AMD and Intel. However, with Intel’s exit from the competition, AMD now controls all market shares that are not controlled by NVIDIA.

This confirms that NVIDIA has become an undeniable ruler in the PC graphics card market. With NVIDIA continuing to develop new technologies, such as the GeForce 5000 series which is expected to launch soon, the company is getting stronger in its position. AMD kept trying to catch up, but the distance created was very large.

Intel Falls in the Graphics Card Market

Intel’s exit from the discrete graphics card market is not surprising for most industry observers. At the beginning of 2023, Intel had experienced a decline in market share to only 2 percent, and in early 2024, this figure fell to zero percent. With this condition, Intel is no longer a significant player in the discrete graphics card market, which makes the competition in this market even narrower.

However, ironically, this happened in conjunction with the launch of the Intel Lunar Lake processor for a laptop, which is equipped with the latest XE2 graphics cores. Intel actually has a plan to bring this technology to the discrete graphics card market with a BattleGage GPU. Unfortunately, the launch of Battleage was delayed from the initial estimate in 2023, and until now there has been no further news about when this graphics card will launch.

The future of the PC graphics card market

Although PC graphics delivery increased in the second quarter of 2024, Jon Peddie from JPR noted that overall, graphics card delivery was still lower than two years ago. This raises concerns about the future of the graphics card market, although there is optimism regarding upcoming games that will take advantage of the entire performance of the existing graphics card.

One aspect that attracts attention is the price of a PC graphics card. According to JPR analyst C. Robert Dow, the price of PC graphics cards is expected to remain stable until NVIDIA and AMD released their latest generation GPUs. This means consumers can expect price stability until the launch of the GeForce 5000 graphics card from NVIDIA and the latest generation of AMD.

However, can Intel regain market share in this condition? With the growing dominance of NVIDIA and AMD, Intel needs a miracle to be able to compete again, especially considering the delay in the launch of the Battleage GPU which has made Intel lose its momentum.

Why is Nvidia’s dominance so strong?

NVIDIA not only dominates the graphics card market, but also creates new standards in the industry. With technologies like Ray Tracing applied to the RTX series, NVIDIA has changed the gaming experience on PC. Ray Tracing is a technology that allows lighting, shadows, and reflections to look more realistic, which greatly affects the quality of the graphics.

In addition, NVIDIA continues to expand its innovations in various sectors. From AI development to the use of GPUs in cloud computing technology, NVIDIA has become more than just a graphics card company. This expansion further strengthens its position as a leader in the graphic technology industry.

On the other hand, AMD continues to pursue by releasing competitive products in a more affordable price segment. However, NVIDIA still excels in terms of innovation and the latest technology. This is what makes NVIDIA the main choice for gamers and creative professionals who need high graphics performance.

Is there any hope for Intel?

Although Intel has been knocked out of the discrete graphics card market, the company still has a chance to rise. The launch of the Battleage GPU could be an important moment for Intel to try to reclaim the market share. However, with the launch delay and intense competition from NVIDIA and AMD, Intel must work hard to regain consumer confidence.

Intel also has opportunities in other sectors, such as integrated graphics technology. Although discrete graphics cards are more reliable by gamers and professionals who require high performance, many PC users still rely on integrated graphics. Intel can continue to develop this technology to maintain its dominance in the PC processor market.

However, can Intel return to the discrete graphics card market and compete with NVIDIA and AMD? This is still a big question. Many industry observers are skeptical with Intel’s chances of returning, given how strong NVIDIA’s position is today.

Intel’s Conclusion Excluded from the Graphic Card Market

The PC graphics card market is currently dominated by two giants: NVIDIA and AMD. With Intel’s exit from the competition, NVIDIA is getting stronger as a market leader, with a market share of 88 percent. AMD controls the rest, but the distance with Nvidia is still very large.

Intel, despite having launched a new processor with advanced graphics technology, has not succeeded in reclaiming its position in the discrete graphics card market. The delayed launch of the Battleage GPU added to the pressure on Intel, which had to fight hard to get back to compete.

For consumers, the good news is that the price of the graphics card is expected to remain stable until the launch of the latest generation of GPUs from NVIDIA and AMD. However, for Intel, the future is still full of uncertainty.

The PC graphics card market will continue to grow, and only time will determine whether Intel can compete again or sink even more under the shadows of NVIDIA and AMD.