Global semiconductor revenue reached $655.9 billion in 2024, marking a 21 percent increase from $542.1 billion in 2023, according to final figures released by market intelligence firm Gartner, Inc.. The significant growth reflects rising investment in artificial intelligence infrastructure and a sharp recovery in memory chip pricing. For the first time, NVIDIA secured the leading position in global semiconductor revenue rankings, overtaking long-standing leaders Samsung and Intel. The company’s surge was fueled by continued demand for discrete graphic processing units (GPUs), which have become a core component in AI data center workloads.
According to Gartner analysts, NVIDIA’s product lineup aligned closely with expanding AI deployment needs, giving it a competitive advantage during a year of rapidly evolving market dynamics. Samsung held onto the second position, driven by substantial gains in memory markets. Prices for both DRAM and flash memory rose in 2024 due to supply constraints and improved demand, contributing to the company’s strong performance in the semiconductor space. The rebound followed a challenging period in 2023, during which memory prices had weakened considerably. Intel, now in third place, saw modest revenue growth of just 0.8 percent for the year.
The company’s slower expansion was attributed to mounting competitive pressure across its main product segments, particularly in central processing units (CPUs) where rival manufacturers have captured greater market share. Analysts noted that Intel was unable to fully capitalize on the surge in demand for AI processing, a trend that other leading firms more effectively leveraged. The overall semiconductor market in 2024 was marked by a 73.4 percent increase in memory revenue, which significantly contributed to total global growth.
Industry analysts pointed to constrained supply chains meeting revived demand across sectors such as consumer electronics, automotive, and enterprise computing. The memory segment’s turnaround was a primary driver of the broader market’s double-digit expansion. Other leading companies in the top ten rankings also experienced reshuffling, influenced by shifting demand patterns, the rapid deployment of generative AI, and advancements in chip manufacturing technologies.
Gartner emphasized that vendors aligned with AI, high-performance computing, and advanced memory technologies generally outperformed those focused on legacy hardware segments. The outlook for 2025 remains cautiously optimistic, with continued momentum expected in AI-related chip demand and further normalization of memory supply chains. However, geopolitical pressures, trade restrictions, and regulatory considerations may affect the sector’s trajectory in the months ahead. – By MENA Newswire News Desk.