Three million add-in boards (AIBs) were sold to cryptocurrency miners in 2017

In a report published by Jon Peddie Research overall GPU shipments in the fourth quarter of 2017 decreased -1.5% from last quarter, however, the reports denotes that more than three million video cards have been sold to crypto miners in 2017, making AMD and Nvidia about $776 million.



It is also mentioned that the prices of video cards will not decrease  short term, which in fact has recently been confirmed by Nvidia over at Massdrop. Prices would continue to rise during the second and third quarters, according to Nvidia. The shortage contributes to this.

-- JPR -- 

YEAR-TO-YEAR TOTAL GPU SHIPMENTS DECREASED -4.8%

Jon Peddie Research the industry’s market research firm reported that overall GPU shipments in the fourth quarter of 2017 decreased -1.5% from last quarter following normal seasonal shipments. Year-to-year total GPU shipments decreased -4.8%, desktop graphics decreased -2%, notebooks decreased -7%. Over 363 graphics units shipped in 2017.


AMD increased its market share 8.1%, Nvidia decreased -6%, and Intel decreased -2%.

Table 1: Graphics Chip Market shares

 

Over three million add-in boards (AIBs) were sold to cryptocurrency miners worth $776 million in 2017. AMD was the primary benefactor of those sales.

Table 2: Graphics Chip Market 

 

The fourth quarter is typically flat to slightly up from the previous quarter in the seasonal cycles of the past. For Q4'17, it decreased -1.5% from last quarter and was above the ten-year average of -3.40%.

“Gaming has been and will continue to be the primary driver for GPU sales, augmented by the demand from cryptocurrency miners.,” said Dr. Jon Peddie, President of Jon Peddie research. We expect demand to slacken from the miners as margins drop in response increasingly utilities costs and supply and demand forces that drive up AIB prices. Gamers can offset those costs by mining when not gaming, but prices will not drop in the near future.” 

Quick highlights

GPUs are traditionally a leading indicator of the market, since a GPU goes into every system before it is shipped, and most of the PC vendors are guiding cautiously for Q1’18. Findings include discrete and integrated graphics (CPU and chipset) for Desktops, Notebooks (and Netbooks). It does not include iPad and Android-based tablets, or ARM-based Servers, or x86-based servers. It does include x86-based tablets, Chromebooks, and embedded systems.

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GPUs are traditionally a leading indicator of the market, since a GPU goes into every non-server system before it is shipped, and most of the PC vendors are guiding cautiously for Q4’14. The Gaming PC segment, where higher-end GPUs are used, was a bright spot in the market in the quarter.

For those who wish to understand the PC market, an understanding of the highly complex technology and ecosystem that has been built around the GPU is essential to understanding the market’s future directions.

The report contains the following content:

Three million add-in boards (AIBs) were sold to cryptocurrency miners in 2017

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