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Graphics-card vendors are shipping a huge amount of their products to try to meet the increased global demand for GPUs. This led to a 38.74% year-over-year increase in video card shipments in Q1 2021, according to industry-tracking intelligence firm Jon Peddie Research.

In its latest report, JPR analysts project that discrete graphics cards (the ones that don’t come built into the CPU) will reach 26% of the total market by 2025.

Of that discrete GPU space, Nvidia continues to dominate. It makes up 81% of the total while AMD represents the remaining 19%.

But the big Q1 highlight is the continued, unprecedented demand for computing devices. Device manufacturers shipped 89 million notebooks in the quarter, which is an all-time record, according to JPR. The goal for hardware companies is to capitalize on remote workers and students looking for Chromebooks and laptops to help with jobs and school.

JPR expects this surge to taper off quickly. While notebook sales increased 49% year-over-year in Q1, companies are forecasting a year-over-year growth of around 4% for Q2. And JPR founder and president Jon Peddie claims this puts some device makers in a tough position in which they could overextend themselves to meet a demand that could shrivel away over the next year.

“The risk is that semiconductor suppliers will be lured into over-reaction and believe that suddenly, hundreds of millions of new users have appeared and the demand will stay high,” said Peddie. “That’s not only not realistic, it’s also not true. Where are [these new users] coming from? Not this planet.”

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