In a new analysis, Omdia reports that total semiconductor revenue reached a record high of $162.1 billion in 2Q24 , marking a 6.7% quarterly growth. This figure surpasses the previous record set in 4Q21 by approximately $500m. The record growth was largely driven by NVIDIA, the industry’s top revenue generator, which now has quarterly semiconductor revenue $18 billion higher than 4Q21.
While 2Q24 set a new revenue record, not all companies are benefitting. Although revenue for the semiconductor market is $33 billion higher than a year ago, over 50% of the companies tracked recorded lower semiconductor revenue compared to a year ago. This shows that the market’s revenue growth is not being shared by half of the companies. Of the 125 companies tracked in both the record quarters of 4Q21 and 2Q24, more than 70% had lower semiconductor revenue in 2Q24 than in 4Q21.
NVIDIA’s revenue is now more than four times greater than it was during the semiconductor industry’s previous record in 4Q21. Without NVIDIA, the market would be far from reaching a new revenue high. Excluding NVIDIA’s revenue, the record remains 4Q21 with total revenue of $155.8 billion, while 2Q24 revenue stands at $138.2 billion – over $17 billion lower.
NVIDIA’s dominant position is mainly due to AI demand, though other semiconductor segments are also benefitting from AI growth.
Memory firms are benefitting from AI demand, particularly due to High-Bandwidth Memory (HBM) chips that support AI processors. Additionally, the memory market has seen an improved supply/demand balance, boosting other areas. Following a challenging 2023 the market has recovered, with quarterly revenue now exceeding $40 billion.
Commenting on the latest industry performance, Cliff Leimbach, Principal Analyst, Omdia stated: “The top semiconductor companies are growing larger. The top ten companies by revenue now account for 64% of the total market in 2Q24, the highest share on record and up seven percentage points over the five-year average of 57%. A comparison to the last record revenue quarter in 4Q21 shows that the market gains are being concentrated among fewer companies. In 4Q21 the top ten held 57% of the revenue share.
“NVIDIA continues to expand its market share, now representing 14.8% of the semiconductor market by revenue, driven by strong AI demand. Intel, historically either the top or the second largest company remains in third place for the third consecutive quarter. With a 7.5% share in 2Q24, this marks Intel’s lowest market share since Omdia began tracking the semiconductor market, in 1Q02,” concludes Leimbach.
