In its latest analysis, Omdia reported that total semiconductor revenue reached a record high of $162.1 billion in the second quarter of 2024, marking a 6.7% growth compared to the previous quarter.
This figure surpassed the prior record set in the fourth quarter of 2021 by approximately $500 million. The surge in revenue was largely driven by NVIDIA, the top revenue generator in the industry, whose quarterly semiconductor revenue has increased by $18 billion since 4Q21.
Despite the record-breaking numbers, the benefits of this growth have not been evenly distributed across the industry. Although the market’s revenue is $33 billion higher than a year ago, over half of the companies tracked by Omdia experienced lower semiconductor revenue compared to the previous year. This disparity highlights that the gains are concentrated among a few key players. Of the 125 companies monitored in both the 4Q21 and 2Q24 periods, more than 70% saw their semiconductor revenue decline in the latest quarter.
NVIDIA’s rise has been particularly striking, with its revenue now more than four times higher than during the industry’s previous peak in 4Q21. Without NVIDIA’s contribution, the semiconductor market would still be trailing its 4Q21 record. Excluding NVIDIA’s revenue, total semiconductor revenue in 2Q24 stood at $138.2 billion, over $17 billion lower than the 4Q21 peak of $155.8 billion. This underscores NVIDIA’s dominant position, driven primarily by the increasing demand for AI technologies. Other segments of the semiconductor market have also seen benefits from AI growth, though to a lesser extent.
One area seeing improvement due to AI demand is the memory sector, particularly through the production of High-Bandwidth Memory (HBM) chips that support AI processors. The memory market, which struggled through 2023, has since recovered, with revenue now exceeding $40 billion. A more balanced supply and demand dynamic has also helped strengthen other areas of the market.
Cliff Leimbach, Principal Analyst at Omdia, commented on the current state of the semiconductor industry: “The top semiconductor companies are growing larger. In 2Q24, the top ten companies by revenue accounted for 64% of the total market, the highest share on record and a significant increase from the five-year average of 57%. A comparison with 4Q21, the previous record quarter, shows that the market’s growth is increasingly concentrated among fewer companies. In 4Q21, the top ten held 57% of the market’s revenue share.
“NVIDIA continues to expand its market share, now representing 14.8% of the total semiconductor market by revenue, driven by strong AI demand. Meanwhile, Intel, traditionally one of the top players, remains in third place for the third consecutive quarter, with a 7.5% share in 2Q24. This is Intel’s lowest market share since Omdia began tracking the industry in 1Q02.”
