According to a recent analysis report by Omdia, the total revenue of the semiconductor industry in the second quarter of 2024 reached $162.1 billion, setting a new historical high with a quarterly growth rate of 6.7%. This number is approximately $0.5 billion higher than the previous record set in the fourth quarter of 2021. This record growth is mainly driven by Nvidia (NVDA.US), the company with the highest revenue in the industry, whose semiconductor quarterly revenue exceeds $18 billion compared to the fourth quarter of 2021.

Although the second quarter of 2024 set a new revenue record, not all companies were able to benefit from it. While the semiconductor market revenue was $33 billion higher than the same period last year, over 50% of the surveyed companies experienced a decline in their semiconductor revenue compared to the same period last year. This indicates that half of the companies did not share in the market revenue growth. Among the 125 tracked companies in the record-breaking fourth quarter of 2021 and the second quarter of 2024, over 70% of the companies had lower semiconductor revenue in the second quarter of 2024 than in the fourth quarter of 2021.

Currently, Nvidia's revenue is more than four times that of the record-breaking quarter in the semiconductor industry (fourth quarter of 2021). Without Nvidia, the market revenue is far from reaching a new high. Excluding Nvidia's revenue, the total revenue record for the fourth quarter of 2021 is still $155.8 billion, while the revenue record for the second quarter of 2024 is $138.2 billion, a decrease of over $17 billion.

Currently, Nvidia's revenue is more than four times that of the record-breaking period in the semiconductor industry during the fourth quarter of 2021. Without Nvidia, the market revenue is far from reaching a new high. Excluding Nvidia's revenue, the total revenue record for the fourth quarter of 2021 is still $155.8 billion, while the revenue record for the second quarter of 2024 is $138.2 billion, a decrease of over $17 billion.

Nvidia's dominant position is mainly due to the demand for artificial intelligence, but other semiconductor sectors also benefit from the growth of artificial intelligence.

Memory companies are benefiting from the demand for artificial intelligence, especially high-bandwidth memory (HBM) chips that support AI processors. Additionally, the supply-demand balance in the memory market has improved, driving development in other areas. After a challenging year in 2023, the market has recovered and quarterly revenue has exceeded $40 billion.

Regarding the latest industry performance, Cliff Leimbach, Chief Analyst at Omdia, said, "Top semiconductor companies continue to expand their scale. In the second quarter of 24, the top ten companies in terms of revenue accounted for 64% of the entire market, the highest share ever recorded, which is 7 percentage points higher than the five-year average level of 57%. Compared to the previous record-breaking revenue quarter in Q4 21, market earnings are concentrated in fewer companies. In Q4 21, the top ten companies accounted for 57% of revenue."

NVIDIA continues to expand its market share, currently accounting for 14.8% of semiconductor market revenue, driven by strong demand for artificial intelligence. Intel (INTC.US), which has historically been ranked first or second, has now been ranked third for three consecutive quarters. Leimbach summarized, "Intel's market share in Q2 24 was 7.5%, the lowest market share since Omdia began tracking the semiconductor market in Q1 2002."