Gartner Says Worldwide Semiconductor Revenue to Grow 18% in 2024 – Semiconductor revenue in data centers nearly doubled in 2024, reaching $112 billion
- Samsung Electronics regained the top spot, overtaking Intel, and Nvidia moved up to third place
- Semiconductor revenue in data centers nearly doubled in 2024, reaching $112 billion
- Global semiconductor revenue projected to total $705 billion by 2025
SAO PAULO , Feb. 11, 2025 /PRNewswire/ — Worldwide semiconductor revenue in 2024 totaled $626 billion, an increase of 18.1% from 2023, according to preliminary results from Gartner, Inc. The company is projecting revenue to total $705 billion in 2025.
George Brocklehurst , senior analyst and vice president at Gartner, said:
Graphics processing units (GPUs) and artificial intelligence (AI) processors used in data center applications (servers and accelerator cards) will be the main drivers of the chip industry in 2024,
“The growing demand for AI and generative artificial intelligence (GenAI) workloads will drive data centers to become the second-largest market for semiconductors in 2024, behind smartphones. Data center semiconductor revenue will total $112 billion in 2024, up from $64.8 billion in 2023.”
The overall market’s positive performance impacted the rankings of several semiconductor suppliers. Eleven suppliers experienced double-digit growth, and only eight of the top 25 semiconductor suppliers reported revenue declines in 2024.
Samsung Electronics Reclaims Top Spot in 2024
With 9 of the Top 10 Semiconductor Suppliers Reporting Revenue Growth in 2024, the Top 10 Semiconductor Suppliers Rankings Changed Year-on-Year.
- Samsung Electronics reclaimed the top spot from Intel and extended its lead over the company in 2024, driven by a strong recovery in memory device prices. Samsung Electronics’ revenue totaled $66.5 billion in 2024.
- Intel slipped to second place as its product suite — AI-enabled PCs and the Core Ultra chipset — was insufficient to offset the limited success of its AI accelerator offering and modest growth in its x86 business. Intel’s semiconductor revenue was flat, with 0.1% growth in 2024 .
- Nvidia continued to perform exceptionally well, growing its semiconductor revenue by 84% in 2024 to $46 billion. It moved up two spots to secure third place thanks to the strength of its AI business.
High-Bandwidth Memory (HBM) will account for 19.2% of Dynamic Random Access Memory (DRAM) revenue in 2025, up from 13.6% in 2024.
Memory revenue grew 71.8% in 2024. Memory’s share as a percentage of total semiconductor sales increased to 25.2% in 2024. DRAM revenue improved 75.4% in 2024, while NAND revenue increased 75.7% year-over-year. HBM production contributed significantly to DRAM vendors’ revenue. HBM revenue accounted for 13.6% of total DRAM revenue in 2024.
Non-memory revenue increased by 6.9% in 2024. Non-memory accounted for 74.8% of total semiconductor revenue in 2024.
Brocklehurst added,
Memory and AI semiconductors will drive growth in the near term, with HBM projected to represent an increasing share of DRAM revenue, reaching 19.2% in 2025,
“HBM revenue is estimated to increase 66.3% in 2025 to reach $19.8 billion.”
Gartner clients can read more in
Market Share Analysis: Semiconductors, Worldwide, 2024 (Preliminary) .
READ the latest news shaping the AI Chips market at AI Chips News
Gartner Says Worldwide Semiconductor Revenue to Grow 18% in 2024 – Semiconductor revenue in data centers nearly doubled in 2024, reaching $112 billion, source
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