In a remarkable shift within the semiconductor industry, NVIDIA has emerged as the world’s leading semiconductor company, surpassing long-time giants Samsung Electronics and Intel.
According to a report by global market research firm Gartner on April 11, NVIDIA claimed the top spot in global semiconductor sales last year, marking a significant leap from its third-place position in 2023. This development underscores the dynamic nature of the semiconductor market and highlights NVIDIA’s strategic focus on AI infrastructure and discrete Graphics Processing Units (dGPU).
The surge in demand for AI-related technologies has been a pivotal factor in NVIDIA’s ascent. Gaurav Gupta, Gartner VP Analyst, noted, “NVIDIA has leaped to the top as demand for dGPU, primarily used for AI workloads of data, has surged.” This demand is driven by the increasing need for powerful computing solutions capable of handling complex data processing tasks efficiently. As a result, NVIDIA’s GPUs have become essential components in AI applications, gaming, professional visualization, and data centers.
Last year saw global semiconductor sales reach $655.9 billion, reflecting a 21% increase from $542.1 billion in 2023. This growth was fueled by heightened demand across various sectors, particularly in AI and memory markets.
While NVIDIA secured its position at the top, Samsung Electronics maintained its stronghold as the second-largest semiconductor company globally. The South Korean tech giant experienced an upward trend in both DRAM and flash memory sectors due to supply-demand imbalances.
Intel fell to third place last year after leading semiconductor sales in 2023. The company faced intensified competition across its major product lines and struggled to fully capitalize on burgeoning demand for AI processing capabilities. This shift highlights the evolving competitive landscape within the industry as companies vie for dominance amid changing technological demands.
SK Hynix also made significant strides last year, climbing from sixth place in 2023 to fourth place in global semiconductor sales. The company’s sales grew by an impressive 91%, recording the second-highest growth rate among the top ten companies after NVIDIA. Analysts attribute SK Hynix’s rapid growth to its dominance in high-bandwidth memory (HBM) and rising average selling prices (ASP) for memory products.
