Omdia: Semiconductor total revenue reached $162.1 billion in the second quarter, hitting a record high.

In a recent analysis report, Omdia pointed out that the total revenue of the semiconductor industry in the second quarter of 24 reached 162.1 billion US dollars, reaching a historical high, with a quarterly growth rate of 6.7%. This number is about 5 billion US dollars higher than the previous record set in the fourth quarter of 21. This record growth is mainly driven by NVIDIA Corporation (NVDA.US), the company with the highest revenue in the industry, whose semiconductor revenue in the quarter is 18 billion US dollars higher than the fourth quarter of 21. Although the second quarter of 24 set a new revenue record, not all companies were able to benefit from it. While semiconductor market revenue was 33 billion US dollars higher than the same period last year, over 50% of the surveyed companies saw a decrease in semiconductor revenue compared to the same period last year. This indicates that half of the companies did not share in the market revenue growth. In the two record-breaking quarters of the fourth quarter of 21 and the second quarter of 24, out of 125 tracked companies, over 70% of companies had lower semiconductor revenue in the second quarter of 24 than in the fourth quarter of 21. Currently, NVIDIA Corporation's revenue is more than four times that of the previous record quarter in the semiconductor industry (fourth quarter of 21). Without NVIDIA Corporation, market revenue has not yet reached a new high. If we exclude NVIDIA Corporation's revenue, the total revenue record in the fourth quarter of 21 would still be 155.8 billion US dollars, while the revenue record in the second quarter of 24 was 138.2 billion US dollars, a decrease of over 17 billion US dollars. NVIDIA Corporation's dominant position is mainly due to the demand for artificial intelligence, but other semiconductor sectors are also benefiting from the growth of artificial intelligence. Memory companies are benefiting from the demand for artificial intelligence, especially high-bandwidth memory (HBM) chips that support artificial intelligence processors. In addition, the balance of supply and demand in the memory market has improved, driving growth in other areas. After a challenging 2023, the market has recovered, and quarterly revenue has exceeded 400 billion US dollars. Regarding the latest industry performance, Omdia's Chief Analyst Cliff Leimbach said, "The scale of top semiconductor companies continues to expand. In the second quarter of 24, the top ten companies in terms of revenue currently account for 64% of the entire market, the highest share on record, 7 percentage points higher than the five-year average of 57%. Compared to the previous record revenue quarter (fourth quarter of 21), revenue is increasingly concentrated in fewer companies. In the fourth quarter of 21, the top ten companies accounted for 57% of revenue." NVIDIA Corporation continues to expand its market share, currently accounting for 14.8% of semiconductor market revenue driven by strong artificial intelligence demand. Intel Corporation (INTC.US) has historically been the top or second-ranked company, but has been in third place for three consecutive quarters. Leimbach summarized, "Intel Corporation's market share in the second quarter of 24 is 7.5%, the lowest market share since Omdia began tracking the semiconductor market in the first quarter of 2002."