While demand for data center graphics processing units (GPUs) that can power artificial intelligence (AI) workloads is absolutely exploding, a different story is playing out in the gaming GPU market.

Intense demand and sky-high prices during the pandemic have given way to muted demand and manufacturers' suggested retail prices (MSRPs) that mean something again. Jon Peddie Research reported that graphics card unit shipments, the vast majority of which are PC graphics cards, tumbled 38.2% year over year in the first quarter.

While market leader Nvidia and perennial runner-up Advanced Micro Devices (NASDAQ: AMD) are suffering declines in sales of gaming graphics cards, AMD is feeling more pain. The company managed a unit market share of 12% in the first quarter, down from 24% in the prior year period. AMD is winning a smaller piece of a smaller pie.

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Source Fool.com