Research Firm Believes Strong GPU Market A Sign of New Growth

Jon Peddie Research released its quarterly report on the state of the GPU market today and optimistically forecasts a strong third quarter. The second quarter bucked seasonal trends; sales were up a massive 31.29 percent. That's in contrast to what we typically see in Q2; over the past eight years sales have usually fallen slightly from Q1-Q2, not shot up. Of the big three, Intel and AMD saw their GPU shipments and market shares increase, while NVIDIA's own market share took a 0.5 percent hit. Shipments at all three companies grew by 35.2 percent, 41.5 percent, and 23.6 percent respectively.

Every bit as bad an idea as it looks.

All three of the "other" GPU manufacturers (Matrox, SiS, S3/VIA) lost marketshare. In times past, the netbook craze might have boosted sales at S3 or SiS, but Intel builds its own GPUs and VIA has not ramped Nano production enough to give even itself a leg to stand on in the GPU market. JPR predicts a strong second half of the year, though it tempers that by noting it won't be until 2010 that volumes and AsPs reach 2008 levels. There are factors that point towards a strong Q3 / Q4 beyond seasonality, including the launch of new operating systems from both MS and Apple, at least one DX11-class GPU, and new 40nm products from both ATI and NVIDIA. The inventory stockups caused by the precipitous drop in demand in Q3 of 2008 are now depleted; a fact that leaves manufacturers needing to boost product supply. If you're planning a GPU upgrade in the next six months, what are you waiting (or looking) for? Sound off and let us know.