AMD expands share in Q3 2025 PC component market, challenging NVIDIA in discrete GPUs

Q3 2025 PC Component Market: AMD Gains Traction in CPUs and Discrete GPUs

The third quarter of 2025 has painted an encouraging picture for the PC component market, revealing a notable uptick in discrete graphics card shipments. Year-over-year, these powerful visual engines experienced a robust 10.7% surge, contributing to a global PC graphics processor market that reached an impressive 76.6 million units. Simultaneously, the central processing unit (CPU) market hit a substantial 65 million units. Overall, the GPU landscape saw a healthy 4.0% growth compared to the previous year, with discrete GPUs leading the charge and laptop GPUs contributing a steady 1.4% increase.

Delving deeper, the quarter-over-quarter performance also showed positive momentum, with overall graphics card shipments climbing by a solid 2.5%. This suggests a renewed consumer appetite for enhanced visual experiences, whether for gaming, content creation, or professional applications. The market's resilience is a welcome development, signaling a healthy demand for upgraded PC hardware.

AMD's Strategic Ascent in the GPU Arena

While NVIDIA continues its near-monopolistic reign in the discrete GPU segment, AMD has managed to carve out significant gains. According to the latest statistics from Jon Peddie Research (JPR), AMD's overall GPU market share expanded by 0.9% during Q3 2025. This incremental yet crucial growth occurred while both NVIDIA and Intel saw their shares slightly recede by 0.1% and 0.9% respectively.

It's essential to understand the nuances of these figures. Intel, with a commanding 61% of the total GPU market, owes its dominance primarily to integrated graphics solutions found in the vast majority of processors. NVIDIA has impressively climbed to the second position with a 24% share, a significant leap from its 18% in Q3 2024. Intel's slice of the pie has consequently shrunk from 65% to 61%. AMD, despite its overall market share standing at 15% (a slight dip from 17% in Q3 2024), is showing a particularly compelling narrative in the discrete GPU space.

Discrete GPU Dominance and AMD's Niche Strength

The discrete graphics card market remains an intensely competitive battleground, where NVIDIA holds an overwhelming 94% market share. In this arena, AMD commands a respectable 6%, while Intel's presence is negligible. This stark division highlights NVIDIA's entrenched leadership and the immense challenge of dislodging it. However, AMD's consistent presence and its recent gains, even if measured in single digits, signify a tenacious effort to compete and innovate. It's like a David facing Goliath, but David is slowly but surely improving his slingshot.

CPU Market Dynamics: AMD's Steady Advance

Shifting focus to the heart of the PC, the central processing unit (CPU) market also experienced positive shifts. Quarter-over-quarter, CPU shipments saw a healthy increase of 2.2%. Within this growth, AMD managed to capture an additional 1% of the market share, while Intel relinquished 0.8%. This ongoing competition between the two giants is a boon for consumers, fostering innovation and competitive pricing.

The composition of the CPU market remains consistent, with 70% of shipments dedicated to laptop processors and 30% to desktop chips. This balance has remained stable year-over-year. While the overall PC CPU market saw a slight year-over-year decline of 2.2%, the quarterly rebound is an encouraging sign. The upcoming releases of new processor architectures in early 2026 are poised to further invigorate the market, potentially offering even greater performance and efficiency gains.

Future Market Outlook and Potential Headwinds

Looking ahead, the PC component market may face some turbulence. The burgeoning artificial intelligence (AI) boom has a ripple effect, particularly on memory prices. Escalating costs for memory-intensive components could lead to price increases for devices and potentially prompt manufacturers to adjust their product lineups to optimize memory usage. This dynamic could influence purchasing decisions and product development strategies in the coming quarters. Navigating these cost fluctuations will be a key challenge for both manufacturers and consumers as the industry continues its rapid evolution.