Light at the end of the tunnel may not be an approaching train

Intel and Nvidia have performed surprisingly-well in the first quarter, according to new figures from Jon Peddie Research.

Peddie’s analysis of GPU shipments shows that, in the second half of last year, the channel stopped ordering in anticipation of a long period of world recession.

But because people kept buying systems, eventually stock was exhausted and manufacturers had to start buying again, ending a tradition of sales dropping between Q4 and Q1, with shipments actually increasing for the first time in years, with Intel and Nvidia being the big winners.

The Q4 -Q1 growth rate had been averaging -5.6% for the last eight years, but jumped to 3.3% this year. Intel’s market share was up by 7.5% from Q4 ’08, with AMD down 8.5%. Nvidia grew by 4.8%.

Year on year numbers show AMD down 27.5%, Intel down 8.2%, Nvidia down 25% and poor little Via reeling with shipments down by a staggering 76.8%.

Peddie predicts an upturn in the market in the third quarter this year, driven in part by major software upgrades such as Windows 7 and Snow Leopard.

The company adds that the cleaning out of old inventory in the electronics, automotive, and real-estate markets should be complete by the end of the summer and some great deals will be available for those happy with 2008 technology.

The latest edition of Peddie’s Market Watch is available now in both electronic and hard copy form for those with $3,500 to spare.