According to a recent report, market research firm Jon Peddie Research (JPR) predicts that the global GPU market will exceed $98.5 billion this year.
The JPR report states that currently, there are 20 companies and 7 IP suppliers worldwide developing standalone, integrated, and embedded GPUs. Most of these are entry-level integrated GPUs, with only a few companies capable of developing standalone GPUs (discrete graphics cards) for gamers.
However, most of the revenue in the current GPU market does not come from graphics GPUs but from AI and HPC GPUs. Although their annual sales only total a few million units, their high price—several tens of thousands of dollars per unit—has brought hundreds of billions of dollars in revenue to Nvidia and billions to AMD.
In just two quarters of the 2025 fiscal year, Nvidia generated $42 billion in revenue from AI and HPC GPUs, and its total GPU sales for the year are expected to exceed $90 billion. AMD is expected to surpass $5 billion in sales of its AI GPUs this year.
“Graphics Processing Units (GPUs) have become ubiquitous, found in almost every industrial, scientific, commercial, and consumer product made today,” said Dr. Jon Peddie, president of Jon Peddie Research. “Some segments, like AI, make headlines due to their rapid growth and high average selling price (ASP), but their sales are lower compared to other segments.”
However, while the sales of AI GPUs are lower compared to other market segments, all new entrants in the GPU market, particularly those from China, are focusing on data center AI GPUs rather than gaming GPUs. Of course, these companies face restrictions from the U.S. government, which does not want China to gain leading AI technology, but they are clearly willing to take risks due to the immense potential of the AI market.
Source: Jon Peddie Research
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