Semiconductor Revenue Reaches $626B in 2024

Global semiconductor revenue reached $626 billion in 2024, marking an 18.1% increase from the previous year, according to preliminary results from Gartner, Inc. The market is projected to continue growing, with total semiconductor revenue expected to reach $705 billion in 2025.

The main drivers of this growth were graphics processing units (GPUs) and AI processors used in data center applications, including servers and accelerator cards. As demand for AI and generative AI (GenAI) workloads surged, data centers became the second-largest market for semiconductors, behind smartphones. In 2024, semiconductor revenue from data centers hit $112 billion, up from $64.8 billion in 2023.

The overall positive performance of the semiconductor market led to strong growth for many vendors, with eleven of the top semiconductor companies seeing double-digit growth. Only eight of the top 25 vendors posted revenue declines in 2024.

Samsung Electronics reclaimed the top spot in semiconductor revenue, surpassing Intel. Samsung’s revenue surged to $66.5 billion in 2024, up from $40.9 billion in 2023, thanks to a strong rebound in memory device prices. Intel, despite moving to No. 2, saw only a slight 0.1% growth in its semiconductor revenue, primarily driven by AI PCs and the Core Ultra chipset. Meanwhile, Nvidia experienced exceptional growth, with a 84% increase in semiconductor revenue, reaching $46 billion. Nvidia’s strong performance was driven by the success of its AI business, allowing it to move up to the third position in the rankings.

Micron Technology saw a substantial 72.7% revenue increase in 2024, highlighting the growing importance of memory in the semiconductor market. DRAM revenue alone grew by 75.4%, while NAND revenue increased by 75.7%. High-bandwidth memory (HBM) made a significant contribution to the revenue for DRAM vendors, representing 13.6% of total DRAM revenue in 2024. Non-memory revenue also showed growth, rising by 6.9% in 2024.

Looking ahead, memory and AI semiconductors are expected to drive further growth. HBM’s share of DRAM revenue is projected to increase to 19.2% in 2025, with HBM revenue expected to grow by 66.3%, reaching $19.8 billion.

This strong performance in the semiconductor market is expected to continue as AI technology and memory innovations play an increasingly vital role in shaping the industry’s future.