'Defying common wisdom', people have been buying more high-end graphics cards despite rising prices, with 12.5 million shipped last quarter alone
High-end graphics card sales surged despite rising prices, defying expectations, with 12.5 million units shipped last quarter.
Nvidia maintains dominance in the consumer GPU market, holding a 90% share of the add-in board segment, according to John Peddie Research. The company’s focus has shifted toward AI and data center revenue, which accounted for 93% of its total revenue in Q2 2026. Despite this strategic pivot, Nvidia’s consumer GPU market share decreased only marginally by 0.01% last quarter. AMD and Intel hold 8% and 2% of the market, respectively, with add-in boards including standalone GPUs used for performance upgrades.
The unexpected surge in high-end GPU sales contradicts typical market behavior, as prices have risen significantly. Dr. Jon Peddie described the trend as "defying common wisdom," noting that consumers continue purchasing despite inflated costs. A poll in August revealed that 56% of respondents were willing to spend over $600 on a graphics card, while 19% would pay over $1000. This suggests that demand remains strong even as prices climb, potentially driven by concerns over further increases.
The ongoing 2026 Iran War and Strait of Hormuz crisis have disrupted component supply chains, contributing to rising prices across segments. Dr. Peddie theorized that consumers may have rushed to purchase add-in boards before prices increased further. Constrained supply has also affected other components, such as motherboards, where price hikes are anticipated. The report highlights how geopolitical tensions are reshaping consumer purchasing behavior in the tech hardware market.
In contrast to the GPU market, desktop PC CPU shipments declined to 14 million units last quarter. This represents a 10.5% drop from the previous quarter and a 33% decrease year-over-year. The stark decline in CPU shipments underscores the divergent trends between GPU and CPU markets. While GPU sales remain robust, the broader PC hardware market shows signs of cooling, reflecting shifting consumer priorities and supply chain challenges.