Therefore, Intel's Xe and Arc GPUs could cause even more headaches for AMD's gaming business as the broader PC market sputters out. During both quarters, AMD said its robust sales of its semi-custom APUs for gaming consoles offset its declining sales of gaming GPUs for PCs.ĪMD expects that slowdown, which is also weighing down its CPU business, to continue for the foreseeable future. Its gaming revenue increased 32% year over year in the second quarter, but only grew 14% year over year (and stayed nearly flat sequentially) to $1.6 billion in the third quarter. Starting in the second quarter of 2022, AMD began reporting its gaming revenue separately from its CPUs and other embedded chips.

Analysts expect its revenue to rise another 43% this year, partly driven by its acquisition of Xilinx in February, but to slow to just 6% growth in 2023 as it laps that purchase and faces a slowdown now that pandemic fears have eased. AMD's revenue rose 45% in 2020 and increased another 68% in 2021 as people bought new PCs to work remotely, attended online classes, and played more PC games. Intel's return to discrete GPUs also coincides with a cyclical slowdown for AMD. Therefore, Intel, AMD, and Nvidia are all fighting for a shrinking market. But discrete GPU shipments actually plunged 42% year over year to 14 million units in the third quarter of 2022, according to JPR, as the PC market shrank. Intel's market share gains wouldn't be too troubling if the entire GPU market were still expanding. How could Intel hurt AMD in the GPU market? Nvidia's comparable GTX 1630 costs about $200. That's a bright red flag for AMD in the low-end market, since the RX 6400 costs about $10 more than the A380, which retails for around $140. Several recent industry benchmarks reveal that Intel's Arc A380 delivers much better performance than AMD's Radeon RX 6400 across a wide range of games.

Like AMD and Nvidia, Intel outsources the production of those 7 nm GPUs to Taiwan Semiconductor Manufacturing. Those chips paved the way for the arrival of its more powerful Arc GPUs, which challenge AMD's Radeon and Nvidia's GeForce in the high-end PC gaming market, in early 2022. That first batch included its Iris Xe MAX chips for mid-range laptops, as well as other Xe GPUs for desktops and servers. That's why Intel finally launched a new generation of Xe discrete GPUs in late 2020 and early 2021.

Intel gpus