In graphics processing units (GPUs), sales have been steadily falling. Even worse, sales for this division were their lowest in almost a decade in the fiscal third quarter of 2022.

The gaming industry is experiencing the same economic downturn as the rest of the globe, which makes it easy to understand why the mining sector is almost dead and cryptocurrency prices are at an all-time low. This also impacts brand name makers of personal computers. Companies have cut their component purchases since demand for brand-new personal computers has dropped and no back-to-school update is anticipated for the first time in many years.

Not to mention the very tempting prices on the secondary market for graphics cards used for mining. This resulted in a decline of 10.5% in GPU shipments, to 75.5 million units, across both discrete and integrated GPUs, this quarter. As calculated by Jon Paddie Research, this indicates a decrease of 25.1% compared to the corresponding period in 2021.

In addition, JPR reports that desktop GPU shipments are down 15.43%, while laptop GPU shipments are down 30%; this is the largest reduction in shipments since the 2009 recession. Intel's processors accounted for 72% of the company's revenue in the quarter, confirming the company's continued market dominance. Furthermore, the company's share of GPU shipments climbed to 4.7%. A decrease in shipments contributed to stock price drops for both NVIDIA (16%) and AMD (12%) within the same time period.

The slowdowns have been caused by a number of factors, including the "cryptocurrency mining stoppage," zero tolerance measures in China (as a result of Covid), US sanctions, and the economic position of customers.

Sales of graphics cards hit lowest sales since a decade