PC market ‘chaos’ leads to slowdown in consumer GPU growth

PC graphics shipments increased by 2.5 percent last quarter, according to a report by Jon Peddie Associates on Monday. Meanwhile, data center GPUs experienced an average growth of 145 percent. This situation reflects the current market, which analyst Jon Peddie aptly described as “chaos.”

The report indicated that the PC GPU market expanded to 76.6 million units in the third quarter of 2025. Over the next five years, the share of discrete GPUs in the PC market is expected to reach about 25 percent.

The report analyzed the GPU segment, including both discrete and integrated GPUs within system-on-chip designs that also incorporate CPUs. In desktops, combined GPU growth was 10.7 percent, whereas laptops saw a 1.4 percent increase. Overall, GPU shipments grew 2.5 percent sequentially and 4.0 percent year-over-year.

Peddie’s report only indicated certain numbers, holding back some for clients or for future reports. Some were simply surrounded by other factors. Intel’s total PC GPU share was 61 percent, basically representative of every CPU with integrated graphics Intel shipped during the third quarter of 2025.

Moreover, AMD’s share was 15 percent, but its total consisted of both integrated and discrete graphics. Nvidia’s share totaled the remaining 24 percent.

The year 2025 ironically kicked off with the release of the Nvidia GeForce 5000 family, immediately sparking anxieties over supply and its impact on prices. However, as 2025 progressed, consumer GPU prices eventually moderated to levels closer to the Manufacturer’s Suggested Retail Price (MSRP).

Concurrently, PC manufacturers began to grapple with supply chain concerns for other key components, particularly DRAM and SSDs. It became clear that manufacturers were prioritizing higher-margin silicon, such as enterprise GPUs, for AI “hyperscaler” companies, rather than channeling resources toward the consumer GPU market.

Peddie found that GPU shipments were below the average 10-year growth rate of 4.7 percent for the PC GPU market.

Dr. Jon Peddie, president of Jon Peddie Research, said in a statement, “The PC and GPU market has been anything but stable or predictable.”

“Memory prices increasing, uncertainty about tariffs, confusion about what an AI PC is, and mixed messages about Windows 10 have disrupted planning and seasonality. Some might call it chaos.”