Samsung Overtakes Intel as the Leading Semiconductor Vendor in 2024 Amid Surge in AI and GPU Demand
The global semiconductor industry has experienced a remarkable growth surge, with total revenue increasing by 18.1 percent to $626 billion in 2024. According to the latest Gartner report, the rapid expansion is largely attributed to the booming demand for graphics processing units (GPUs) and AI processors, particularly those used in data centers, servers, and accelerator cards. With projections indicating that semiconductor revenue will reach an estimated $705 billion in 2025, the market is set for even more impressive gains.
AI and Data Centers Drive Semiconductor Market Growth
George Brocklehurst, VP Analyst at Gartner, pointed out that AI and generative AI (GenAI) workloads were central in propelling data centers to become the second-largest market for semiconductors in 2024, trailing only the smartphone segment. Data center semiconductor revenue surged to $112 billion in 2024, an enormous jump from $64.8 billion in 2023, as demand for AI-specific hardware reached unprecedented levels.
The demand for AI accelerators, memory chips, and processing units has led to rapid expansion across the semiconductor sector, influencing the rankings of the top semiconductor vendors.
Samsung Reclaims Top Spot, Overtaking Intel
In a significant shift in the semiconductor market rankings, Samsung Electronics reclaimed its position as the No. 1 semiconductor vendor in 2024, surpassing Intel. This remarkable achievement was driven by a strong rebound in memory device prices, which helped Samsung reach a revenue total of $66.5 billion. Samsung’s performance was boosted by the increasing demand for memory chips, particularly DRAM and NAND flash memory, which saw substantial year-over-year growth.
Intel, now ranked second, faced challenges in gaining momentum in AI accelerators and saw only modest growth in its core x86 business. Despite this, Intel’s semiconductor revenue remained relatively stable, posting a marginal increase of 0.1 percent in 2024.
Nvidia Soars as AI Business Propels Revenue Growth
Another significant mover in the rankings was Nvidia, which made impressive strides, increasing its semiconductor revenue by 84 percent to $46 billion. Nvidia moved up two spots, securing the No. 3 position due to the strength of its AI business. The company’s dominance in AI-driven GPUs and data center processors has positioned it as a key player in the ongoing AI revolution, driving substantial demand for its products.
Top Semiconductor Vendors in 2024
According to Gartner’s rankings of the top 10 semiconductor vendors by revenue, the market share in 2024 looked as follows:
- Samsung Electronics – 10.6 percent market share
- Intel – 7.9 percent market share
- Nvidia – 7.3 percent market share
- SK hynix – 6.9 percent market share
- Qualcomm – 4.7 percent market share
- Micron Technology – 4.5 percent market share
- Broadcom – 3.8 percent market share
- AMD – 3.2 percent market share
- Apple – 2.7 percent market share
- Infineon Technologies – 2.5 percent market share
While Samsung and Nvidia saw significant growth, some companies, including Infineon Technologies, experienced declines, reflecting the broader volatility in the semiconductor industry.
Memory Devices Lead the Charge in Semiconductor Growth
The memory segment was a key driver of the semiconductor market’s expansion in 2024, recording an astonishing 71.8 percent increase in revenue. Memory devices accounted for 25.2 percent of the total semiconductor market share. DRAM revenue alone grew by 75.4 percent, while NAND revenue rose by 75.7 percent year-over-year. One standout contributor to this growth was high-bandwidth memory (HBM), which accounted for 13.6 percent of total DRAM sales in 2024.
Looking Ahead: HBM and AI-Driven Semiconductors to Fuel Future Growth
The future of the semiconductor market looks promising, with memory devices and AI-driven semiconductors expected to continue driving the growth of the industry. Analysts predict that HBM will make up 19.2 percent of DRAM revenue by 2025, with projected revenue reaching $19.8 billion, marking a 66.3 percent increase from the previous year.
As AI technology continues to evolve, the demand for cutting-edge semiconductor products, including those for AI accelerators, memory chips, and high-performance GPUs, will likely continue to grow, shaping the next chapter of the semiconductor industry.
