Nvidia one of few firms growing in 2Q24’s record chip market
The global chip market was worth US$162.1 billion in 2Q24, according to Omdia. This was up 6.7 percent sequentially and beat the previous record set in 4Q21 by US$500 million, the market analyst said.
However, market leader Nvidia alone contributed US$18 billion in 2Q24, and many other companies are treading water or even seeing lower sales, Omdia observed.
Nvidia took in 14.8 percent – or one seventh – of all chip revenue in 2Q24, twice as much as Intel Corp which was responsible for 7.5 percent of chip revenue and was ranked third behind memory maker Samsung.
Most chip companies shrinking
Although revenue for the semiconductor market in 2Q24 was $33 billion higher than a year ago, over 50 percent of the companies tracked recorded lower semiconductor revenue compared to a year ago, Omdia said. Of the 125 companies tracked in both the record quarters of 4Q21 and 2Q24, more than 70 percent had lower semiconductor revenue in 2Q24 than in 4Q21, the firm added.
Nvidia’s phenomenal growth is due to AI demand with a few other companies, such as memory, benefiting.
In addition to demand for high-bandwidth memory (HBM) chips that support AI processors, 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.
Cliff Leimbach, principal analyst at Omdia, said that the chip market is being concentrated in fewer market leaders with fewer sales shared amongst the rest. The top ten companies by revenue accounted for 64 percent of the total market in 2Q24, the highest share on record and way ahead of the 57 percent long-term average.
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