AI boom drives semiconductor growth to $626 Billion, with more gains expected in 2025

Ai Money While investors and tech giants scramble for real-world business opportunity, semiconductor companies are raking it in. Samsung is the top semiconductor company in the world by revenue. The industry is set for another successful year. Gartner reported recently that semiconductor industry revenue for 2024 will reach $626 billion. This represents an 18.1% increase over 2023. According to preliminary projections, revenue will continue to increase and reach $705 billion by 2025. Unsurprisingly, AI processors and custom accelerators were the main contributors to this market expansion.

George Brocklehurst stated that GPUs, AI processors, and accelerator cards used in data centres, servers, and accelerators played a crucial role in the growth of the semiconductor industry in 2024. He confirmed that the growing demand for generative AI workloads and services has made data centers products the second largest market segment for semiconductor producers.

The revenue from data center chips grew to $112 billion by 2024 from $64.8 billion just a few years earlier. Samsung’s $66.5 billion total revenue was boosted by the “AI bubble” despite concerns from industry voices that a downturn is imminent.

Gartner reports that Nvidia’s performance “exceptionally well,” was[194590011]with an 84 per cent revenue increase to $46 billion. The GPU designer has now become the third largest semiconductor vendor in the world by revenue as the AI boom fuels the demand for high-priced GeForce cards and accelerators to sustain the hype. Gartner reported that nine out of the top ten semiconductor companies will achieve record results by 2024. SK Hynix, a Korean memory manufacturer, led the industry’s growth, soaring 86 percent to $42.8 Billion, and climbing to fourth position behind Nvidia. Memory chips are now as important as GPUs. The memory market is expected to grow by 71.8 percent by 2024. Gartner reports that memory chips now account 25.2 percent of annual semiconductor sales. DRAM revenue increased by 75.4 percent while NAND revenue increased 75.7 percent. Analysts expect high bandwidth memory to remain the key revenue driver for DRAM, with a projected growth of 66.3%, reaching $19.8 Billion in 2025.