New data from Jon Peddie Research shows the desktop graphics card market cooled in the final quarter of 2025 even as Nvidia widened its lead in market share. The report records a quarter-on-quarter AIB shipment decline of 4.4%. Year-on-year shipments were up by about 36%, but that gain follows a wave of new launches from both AMD and Nvidia since late 2024. More important for immediate market health is the quarter-on-quarter drop.
Jon Peddie also reports that the AIB overall attach rate in desktop PCs for the quarter decreased to 55%, down 12.3% from the prior quarter. That means fewer systems were sold with discrete graphics cards installed or bundled at point of sale.
Market share movement favored Nvidia. The input data notes Nvidia holds roughly 94% of the AIB market while AMD sits near 5%. Intel’s share was essentially flat in the quarter. Jon Peddie highlights multiple pressures on the market, from stronger integrated graphics in notebooks to rising component costs that lift high-end card prices. On pricing and supply, the report links rising memory costs and broader industry effects from AI demand to poorer replacement patterns among customers. The analysis also points to notebook improvements, such as Intel’s Panther Lake integrated graphics, as a factor reducing demand for entry-level discrete cards.
Dr. Jon Peddie, president of the research firm, summarizes the pressure on the market. He says, “The AIB market, largely supported by gamers, is being squeezed from the bottom by powerful new notebooks and CPU integrated graphics, and from the high end by rising pricing due to competition (supply and demand), memory prices, and Trump administration tariffs that bounce around.” The report includes a forecast that the AIB segment will shrink over the next few years. It projects a compound annual growth rate of -5.9% from 2024 to 2028 and an installed base of 172 million units by the end of that period. Dr. Peddie adds a stark short term outlook: “Customers who would, and in some cases should, be replacing their PCs and AIB are holding off. We think because of these unstable conditions, the PC and AIB market will decline almost 10% in 2026.”
Those numbers and quotes come straight from Jon Peddie Research and its quarter report linked above. If you are deciding whether to replace a desktop GPU or buy a new prebuilt, consider whether price and memory costs are forcing other buyers to wait or to choose laptops with stronger integrated graphics instead. Share your reasoning in the comments below.
