Graphics card gross sales fell closely – by way of each discrete (standalone) GPUs and built-in ones (constructed into processors) – in Q2, and Nvidia’s line-up took a very heavy beating in keeping with the most recent from an analyst agency.

As Tom’s {Hardware} (opens in new tab) stories, Jon Peddie Analysis (JPR) has produced figures for Q2 2022 which present that general GPU gross sales fell by 14.9% in comparison with the earlier quarter, attributable to demand for PCs ebbing away – with the rising value of residing probably beginning to play an even bigger half on this.

Shipments of standalone graphics playing cards fell additional than built-in, slumping by 22.6%, and Nvidia was hit hardest, with a 25.7% drop in gross sales for Q2. That’s in distinct distinction to a far much less impactful drop for AMD of seven.6% in comparison with the earlier quarter.

Intel dropped by 9.8% as built-in GPUs additionally fell, with the variety of processors for PCs being shipped falling by 7% quarter-on-quarter (and 34% year-on-year, fairly an eye-opening determine, too).

These are some worrying dips, notably for Nvidia, and the general future for the GPU business appears shaky as JPR observes, writing that: “International occasions such because the continued struggle in Ukraine, Russia’s manipulation of gasoline provides to Western Europe, and the following nervousness these occasions create have put a dampener on Europe’s financial system; the UK is in recession with excessive inflation.

“Forecasting has by no means been more difficult, and consequently, our forecast and others’ will get revised steadily as new information seems.”

Evaluation: A claustrophobic and tough time for Nvidia?

Falling graphics card gross sales underline what we’ve been listening to for some time now – that lack of provide is now not the difficulty, however softening demand, notably for Nvidia’s GPUs. Group Inexperienced made it clear sufficient within the aftermath of the agency’s latest fiscal outcomes that too many GeForce graphics card have been made, and there’s now an issue with oversupply.

The actually thorny bit concerning this overshooting with the manufacturing of current-gen RTX 3000 GPUs is that the price of residing and inflation disaster is making itself extra strongly felt as time rolls on, plus the launch of next-gen graphics playing cards (RTX 4000, and RDNA three for AMD) is getting fairly close to. So, of us are more and more more likely to need to await the massive efficiency leaps that next-gen merchandise deliver, slightly than shopping for proper now – until the worth actually is correct.

Given all this, these figures – and that notably dramatic drop for Nvidia – aren’t stunning, they usually again up the latest assertion from the rumor mill that Group Inexperienced goes to be implementing a lot greater worth slashing measures than the reductions we’ve already seen. Certainly, we’ve heard that it is a transfer coming imminently – in September – from two stories now.

AMD can be mentioned to be additional discounting its current-gen RX 6000 playing cards, too, however it’s Nvidia specifically struggling the larger gross sales drops as we see right here, with Group Inexperienced caught in an disagreeable scenario the place the hole between present and next-gen GPUs is shrinking quickly, making for a critically claustrophobic surroundings with valuable little room to maneuver.

That mentioned, the speculation is that large worth cuts aren’t the one potential answer – Nvidia has mentioned it may look elsewhere to dump the GPU oversupply, like information facilities for cloud companies – however in actuality, we’re anticipating some greater GPU worth cuts for playing cards on cabinets quickly sufficient, a method or one other.

And with numbers coming in like this most up-to-date report from JPR, it solely appears extra probably that Nvidia will take motion on the pricing entrance – both that, or face having to delay the next-gen Lovelace launch, which is one other risk right here. A staggered launch with greater gaps between the RTX 4090 (supposedly out of the gate first) and different RTX 4000 fashions could occur, to depart extra respiratory room to shed extra RTX 3000 inventory, presumably together with worth drops for the latter.

Regardless of the case, it’s trying more and more like Nvidia must take some firmer actions to assist navigate GPU waters that are getting more and more uneven as 2022 rolls onward.

In the present day’s greatest graphics card offersPresent Extra OffersWe examine over 250 million merchandise every single day for the perfect costs