The global semiconductor industry achieved a record-high revenue of $162.1 billion in the second quarter of 2024 (2Q24), representing a 6.7 percent growth from the previous quarter.
This figure surpasses the previous peak set in the fourth quarter of 2021 (4Q21) by approximately $500 million, largely driven by NVIDIA’s dominant position in the market, Omdia report said.
In Q2 2024, NVIDIA recorded quarterly revenue of $30 billion, up 15 percent from Q1 and up 122 percent from a year ago.
NVIDIA, the top revenue generator in the global semiconductor sector, saw its quarterly revenue exceed 4Q21 levels by $18 billion, largely due to surging demand for AI technology. Without NVIDIA’s contribution, the market would still be trailing the 4Q21 revenue record by $17 billion, with total revenue excluding NVIDIA at $138.2 billion in 2Q24.
The top ten semiconductor companies now account for 64 percent of the total market in 2Q24, up from 57 percent in 4Q21.
NVIDIA alone commands 14.8 percent of the market, while Intel, once a market leader, holds its lowest-ever market share at 7.5 percent, ranking third for the third consecutive quarter.
Intel has reported second-quarter revenue of $12.8 billion, down 1 percent year-over-year.
However, despite the record-breaking overall performance, not all companies are benefitting. More than 50 percent of semiconductor companies recorded lower revenue in 2Q24 compared to the previous year, signaling that revenue growth is being concentrated among fewer players. Of the 125 companies tracked by Omdia, over 70 percent saw lower revenue in 2Q24 than in 4Q21.
Memory companies are among those profiting from the rising demand for AI, particularly due to the growth of High-Bandwidth Memory (HBM) chips that support AI processors. The memory market, which faced challenges in 2023, has recovered and now generates over $40 billion in quarterly revenue.
Cliff Leimbach, Principal Analyst at Omdia, highlighted the consolidation of the industry’s gains among fewer companies.
Baburajan Kizhakedath
