Nvidia Captures 63% of Top Semiconductor Firms’ Profits

The semiconductor industry experienced a significant shift in 2024, with Nvidia emerging as the profit leader. The company captured 63% of the combined net profit among the top ten semiconductor firms, driven by the growing demand for AI chips.

The industry’s combined net profit surged by 38% to $30.4 billion, marking the largest increase in three years. Seven out of ten major players saw positive financial turnarounds.

Nvidia’s third-quarter net profit more than doubled to $19.3 billion, accounting for 63% of the total combined profit. Nvidia‘s dominance is evident in its 90% market share in GPUs for AI systems.

The company’s data center-focused sales revenue doubled, now comprising about 90% of its total revenue. Advanced Micro Devices (AMD) secured the second position in GPUs, with its net profit reaching $771 million, a 2.6-fold increase from the previous year.

High-bandwidth memory (HBM) also saw strong demand. SK Hynix, the leading HBM supplier, sold out its inventory for 2024 and most of 2025.

Samsung Electronics net profit rose by 72%, while Taiwan Semiconductor Manufacturing Co. (TSMC) achieved record profits. However, demand for conventional chips declined due to China’s economic slowdown and weak electric vehicle sales in the US and Europe.

Global Semiconductor Market

The global semiconductor market is projected to grow by 16% in 2024, reaching $611.2 billion. Yet, excluding Nvidia, the net profit of major semiconductor companies dropped by 13% year-on-year.

Intel faced challenges, recording a quarterly net loss of $16.6 billion. Automotive and industrial chip sectors also struggled, with companies like Texas Instruments and STMicroelectronics reporting profit declines.

Market observers expect a 60% year-on-year increase in fourth-quarter net profit for the ten semiconductor companies, driven by AI demand. However, experts caution that AI server investment growth may slow after 2024.

This evolving landscape highlights the importance of adaptability and innovation in the technology sector, as companies navigate the shift towards AI-driven demand while managing challenges in traditional markets.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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