Key Takeaways
1. Surge in Shipments: Graphics card shipments rose by 27% and desktop CPUs by 21.6% in Q2 2025, defying typical seasonal declines.
2. Attach Rate: The attach rate of 1.54 GPUs per CPU indicates many systems are being built or upgraded simultaneously.
3. Pricing and Supply Issues: Price changes and supply limitations drove increased shipments, with midrange prices stabilizing after initial decreases.
4. Market Share Changes: Nvidia’s AIB market share increased to 94%, while AMD’s dropped to 6%, with Intel’s share remaining minimal.
5. Future Projections: The AIB market is expected to decline by 5.4% annually from 2024 to 2028, with a temporary spike in Q2 attributed to tariff concerns.
Desktop graphics shipments during Q2 2025 diverged from the usual seasonal trends. AIB volumes reached 11.6 million units, with desktop CPUs sitting at 21.7 million units. This quarter exceeded the normal slow period seen in Q2. According to Jon Peddie Research, the attach rate stood at 1.54 GPUs for each CPU, suggesting that many systems are being built and upgraded at the same time.
Surge in Shipments
Shipments of graphics cards surged by 27 percent compared to the previous quarter, while desktop CPUs saw an increase of 21.6 percent. However, CPU volumes were still 4.4 percent lower compared to the previous year. Generally, Q2 experiences a decline, but this period outperformed the 10-year average gain of 5.7 percent.
Pricing and Supply Issues
The increase in shipments can be attributed to pricing changes and supply limitations. Prices for midrange and entry-level AIBs decreased, while high-end models saw price hikes. Retailers experienced quick sellouts, which is not commonly seen in Q2. JPR noted that consumers sped up their purchases due to concerns about possible tariffs. These shortages have been observed extending into early Q3 2025, with midrange prices just now beginning to stabilize. Such patterns indicate a shift in demand and distribution.
Nvidia has increased its AIB market share to around 94 percent, a rise of 2.1 points. In contrast, AMD’s share has fallen to roughly 6 percent, and Intel remains close to zero. In the midrange area, AMD introduced the Radeon RX 9070 XT and RX 9070 using RDNA 4 technology, while Nvidia brought out the GeForce RTX 5070. On the high-end side, Nvidia released the RTX 5080 and also announced the RTX 500 workstation card. There are rumors of two new Intel boards, including one with dual-GPU support, but these remain unverified.
Future Market Projections
Jon Peddie Research predicts that the AIB market will decline by about 5.4 percent annually from 2024 to 2028. The total number of installed units is expected to reach 163 million by 2028, with desktops making up nearly 87 percent of that number. The spike in Q2 appears to be a temporary reaction to tariffs rather than an indication of a long-term trend.
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