Nvidia has solidified its position as the undisputed leader in the PC graphics card market, commanding an impressive 94 percent market share in the second quarter of 2025, according to the latest data from Jon Peddie Research. This marks a historic high for Nvidia, while AMD’s share has sharply declined to just 6 percent. Intel’s discrete GPU presence remains negligible despite recent product launches.
Nvidia’s Market Supremacy
Nvidia’s massive 94 percent market share reflects a 2.1 percentage point gain from the previous quarter, fueled by high consumer demand and strategic product positioning. The increase in add-in board shipments by 27 percent quarter-over-quarter to 11.6 million units highlights consumers’ eagerness to purchase ahead of impending tariff-driven price hikes. Nvidia has also adjusted its prices 5-15 percent upward to offset increased manufacturing costs and tariffs affecting GPU components.
AMD’s Production Constraints Impact Market Share
AMD’s market share decline is primarily due to significant production shortages rather than a lack of demand. Despite high anticipation for its RDNA 4 graphics cards, AMD shipped roughly 750,000 GPUs in the first quarter of 2025, vastly overshadowed by Nvidia’s 8.46 million units shipped. Supply constraints have driven up prices of AMD’s RX 9070 XT cards well above their original $599 MSRP, reaching $750-$800 in many retail locations. This shortage has limited AMD’s ability to capitalize on its new product launches fully.
Intel’s GPU Ambitions Fall Short
Intel’s entry into discrete GPUs with its Battlemage B580 and B570 series has yet to make a significant market impact. Jon Peddie Research records Intel at 0 percent discrete GPU market share. Without the established gaming brand and ecosystem presence that AMD and Nvidia boast, Intel struggles to compete in this highly competitive market. However, Intel holds a notable 24 percent share in integrated graphics, underscoring the broader competition beyond discrete GPUs.
R&D Investments Shape Future Competition
The GPU market competition is further influenced by extensive research and development investments. Intel leads with $16.5 billion spent on R&D in 2024, followed by Nvidia’s $12.9 billion and AMD’s $6.5 billion. When measured as a percentage of revenue, Intel and AMD invest significantly more into R&D (31 and 26 percent respectively) compared to Nvidia’s 10 percent, largely due to Nvidia’s robust AI-driven revenues.
Tariff-Driven Market Uncertainty
Ongoing tariff pressures on GPU components—from 10 percent on Chinese imports to 32 percent on Taiwanese goods—continue to create uncertainty for PC suppliers and hardware manufacturers. The reconfiguration of supply chains and anticipated exhaustion of pre-tariff inventories by the third quarter of 2025 may lead to further price increases, impacting market dynamics.
Conclusion
Nvidia’s dominant 94 percent market share demonstrates the company’s strategic edge in gaming performance, AI capabilities, and manufacturing partnerships. Meanwhile, AMD’s supply constraints hinder its competitive stance, and Intel’s new discrete GPUs have yet to translate into market traction. As tariffs and trade policies add layers of complexity to supply chains, the GPU market is poised for more shifts and challenges ahead.
