Omdia reports record semiconductor revenue in 2Q24
Analyst and consultancy firm Omdia reports that total semiconductor revenue reached a record high of USD 162.1 billion in 2Q24, marking a 6.7% quarterly growth.
This figure exceeds the previous record by over USD 500 million, which was achieved in 4Q21. The new record was largely driven by Nvidia, currently the industry's top revenue-generating company – which now has quarterly semiconductor revenue USD 18 billion higher than in 4Q21.
Even though 2Q24's revenue broke previous records, not all businesses are benefitting. Despite the fact that the semiconductor market's revenue is USD 33 billion more than it was a year earlier, more than half of the companies tracked reported 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 the company, the market would be far from reaching a new revenue high. Excluding Nvidia's revenue, the record remains 4Q21 with total revenues of USD 155.8 billion, while 2Q24's revenue would stand at USD 138.2 billion.
Memory companies are benefiting from AI demand, particularly due to High-Bandwidth Memory (HBM) chips that power AI processors. Furthermore, the memory industry has seen an improved supply/demand balance, which has boosted other areas. Following a tough 2023, the market has rebounded, with quarterly revenue topping USD 40 billion.
“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,” says Cliff Leimbach, Principal Analyst at Omdia in the press release.
Leimbach continues to say that Nvidia keeps expanding 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,” Leimbach concludes.
