Saturday March 02, 2019

NVIDIA and AMD Are Shipping Fewer GPUs as Retailers Sit on Inventory

Jon Peddie Research’s review of the GPU market for Q4 2018 suggests retailers are still neck deep in graphics cards they can’t get rid of, as overall shipments are down from the previous quarter: "all three companies saw a 2.65-percent decline in shipments from Q3 2018 to Q4 2018. AMD was down 6.8 percent, NVIDIA was down 7.6 percent, and Intel was down 0.7 percent." Peddie predicts the fallout from the cryptocurrency crash will persist through Q1 and Q219.

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Year-over-year, GPU shipments dropped 3.3 percent. An 8-percent increase in notebook GPUs wasn’t enough to offset a 20-percent decline in desktop video cards. "The channel’s demand for add-in boards (AIBs) in early 2018 was out of sync with what was happening in the market," Jon Peddie Research founder Dr. Jon Peddie said. "As a result the channel was burdened with too much inventory. That has impacted sales of discrete GPUs in Q4." And it’s unlikely that the market and supply chain will equalize any time soon.

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