Intel commands 60 percent of the GPU market -

AMD and Nvidia are losing market share to Intel, which has managed to capture 60 percent of the GPU market.

According to beancounters at Jon Peddie Research, Intel was the only company to boost sales of its graphics adapters and market share. The reason for that is the rise of the share of central processing units with integrated graphics engines inside Intel's product mix.

Intel's graphics adapters soared 19.6 percent as sales of CPUs with integrated graphics rose 41 percent.

AMD's shipments of graphics adapters dropped 7.3 percent despite the fact that it managed to increase sales of its microprocessors with built-in graphics accelerators. Nvidia sold 5.3 percent less graphics products even if it collected lots of design wins with its discrete GPUs  and increased its sales by 30 percent

However there are some alarming problems with Jon Peddie's figures. While GPU shipments during the second quarter of 2011 increased to 140 million units, up 22 million units from this quarter last year they do not appear to be ending up under the bonnet of PCs.

Considering that in average there are 1.6 graphics adapters per every computer sold, it is clear by far not all Intel's integrated graphics adapters are used by consumers. Normally, the second quarter of the year is a slower business quarter in the graphics industry. This year, Q2 2011 did not conform to the normal seasonal cycle

It seems likely that the increase might be channel stuffing and the 6.3 percent up-swing in graphics could be an inventory build-up.

If this is the case it could be bad news for figures later in the year as suppliers use these stored chips in machines.