• AIPressRoom
  • Posts
  • GenAI drove the chip business’s first quarterly income improve since 2021

GenAI drove the chip business’s first quarterly income improve since 2021

September 08, 2023

We’re thrilled to announce the return of GamesBeat Subsequent, hosted in San Francisco this October, the place we’ll discover the theme of “Taking part in the Edge.” Apply to talk right here and study extra about sponsorship alternatives right here. On the occasion, we will even announce 25 top game startups because the 2024 Sport Changers. Apply or nominate today!

After 5 straight quarters with declining income, the semiconductor business reversed course and elevated income within the second quarter, in keeping with a report by market researcher Omdia.

The corporate’s Competitive Landscape Tracker stated quarterly income grew 3.8% to $124.3 billion Q2. This progress is in keeping with historic patterns for the entire semiconductor market, with the second quarter income rising on common of three.4% from the primary quarter (utilizing knowledge from 2002 by means of 2022).

Nonetheless, progress inside semiconductor segments continues to diverge from historic developments. For instance, the dynamic random entry reminiscence (DRAM) market was up 15% in 2Q23 with the historic sample of seven.5% within the second quarter.

Omdia stated the expansion is a welcome signal for the semiconductor business after the longest interval of declines since Omdia started monitoring the market in 2002.

Occasion

VB Remodel 2023 On-Demand

Did you miss a session from VB Remodel 2023? Register to entry the on-demand library for all of our featured classes.

Nvidia is rising by means of the ranks of the chip business.

Nonetheless, the toll of the shrinking market has lowered the present market significantly, with the semiconductor market by income now at 79% of what it was one yr in the past when complete income was $160 billion in 2Q22. It should take time to return to the income ranges of late 2021.

Nvidia led the semiconductor turnaround in 2Q23. Business vast, semiconductor income grew $4.6 billion from the earlier quarter, and $2.5 billion of that elevated quarterly income got here from Nvidia alone. The fast, latest progress in demand for generative AI, a market that Nvidia dominates, is pushing Nvidia up the market share rankings.

The information processing section, pushed by AI chips into the server house, grew 15% quarter-over-quarter (QoQ) and makes up almost one-third of semiconductor income (31% in 2Q23). The wi-fi section (dominated by smartphones) is the second largest section and declined 3% QoQ as end-demand on this sector continues to be weak. The automotive semiconductor sector continues to develop, up 3.2%.

Nvidia drove income in chips in Q2 due to generative AI.

Nvidia has led the turnaround, rising semiconductor income 47.5% from the earlier quarter. One yr in the past, Nvidia was the nineth largest semiconductor firm by income. And on the finish of Q2, the rating was third.

Whereas Nvidia was the most important affect on the rising market, most main companies additionally contributed to the expansion. Of the highest ten companies, eight elevated semiconductor income in 2Q23, illustrating that the turnaround shouldn’t be restricted to at least one sector of the general market.

GamesBeat’s creed when protecting the sport business is “the place ardour meets enterprise.” What does this imply? We need to let you know how the information issues to you — not simply as a decision-maker at a sport studio, but in addition as a fan of video games. Whether or not you learn our articles, hearken to our podcasts, or watch our movies, GamesBeat will assist you study concerning the business and revel in participating with it. Discover our Briefings.