diff --git a/src/amd/compiler/aco_instruction_selection_setup.cpp b/src/amd/compiler/aco_instruction_selection_setup.cpp
index 7141bbf2c93..09536cad5b6 100644
--- a/src/amd/compiler/aco_instruction_selection_setup.cpp
+++ b/src/amd/compiler/aco_instruction_selection_setup.cpp
@@ -89,6 +89,31 @@ is_block_reachable(nir_function_impl *impl, nir_block *known_reachable, nir_bloc
    return false;
 }
 
+bool
+only_used_by_readlane_or_phi(nir_dest *dest)
+{
+   nir_src *src = list_first_entry(&dest->ssa.uses, nir_src, use_link);
+
+   switch (src->parent_instr->type) {
+   case nir_instr_type_alu: {
+      nir_alu_instr *alu = nir_instr_as_alu(src->parent_instr);
+      if (alu->op == nir_op_unpack_64_2x32_split_x || alu->op == nir_op_unpack_64_2x32_split_y)
+         return only_used_by_readlane_or_phi(&alu->dest.dest);
+      return false;
+   }
+   case nir_instr_type_intrinsic: {
+      nir_intrinsic_instr *intrin = nir_instr_as_intrinsic(src->parent_instr);
+      return intrin->intrinsic == nir_intrinsic_read_invocation ||
+             intrin->intrinsic == nir_intrinsic_read_first_invocation ||
+             intrin->intrinsic == nir_intrinsic_lane_permute_16_amd;
+   }
+   case nir_instr_type_phi:
+      return only_used_by_readlane_or_phi(&nir_instr_as_phi(src->parent_instr)->dest);
+   default:
+      return false;
+   }
+}
+
 /* If one side of a divergent IF ends in a branch and the other doesn't, we
  * might have to emit the contents of the side without the branch at the merge
  * block instead. This is so that we can use any SGPR live-out of the side
@@ -830,6 +855,16 @@ void init_context(isel_context *ctx, nir_shader *shader)
                   case nir_intrinsic_bvh64_intersect_ray_amd:
                      type = RegType::vgpr;
                      break;
+                  case nir_intrinsic_load_shared:
+                     /* When the result of these loads is only used by cross-lane instructions,
+                     * it is beneficial to use a VGPR destination. This is because this allows
+                     * to put the s_waitcnt further down, which decreases latency.
+                     */
+                     if (only_used_by_readlane_or_phi(&intrinsic->dest)) {
+                        type = RegType::vgpr;
+                        break;
+                     }
+                     FALLTHROUGH;
                   case nir_intrinsic_shuffle:
                   case nir_intrinsic_quad_broadcast:
                   case nir_intrinsic_quad_swap_horizontal:
@@ -844,7 +879,6 @@ void init_context(isel_context *ctx, nir_shader *shader)
                   case nir_intrinsic_load_ssbo:
                   case nir_intrinsic_load_global:
                   case nir_intrinsic_vulkan_resource_index:
-                  case nir_intrinsic_load_shared:
                   case nir_intrinsic_get_ssbo_size:
                      type = nir_dest_is_divergent(intrinsic->dest) ? RegType::vgpr : RegType::sgpr;
                      break;