Global industry research firm Gartner, Inc. reported that worldwide semiconductor revenue totaled $626 billion in 2024, an increase of 18.1% from 2023, according to preliminary results. Revenue is projected to total $705 billion in 2025.
Graphics processing units (GPUs) and AI processors used in data center applications (servers and accelerator cards) were the key drivers for the chip sector in 2024. The rising demand for AI and generative AI (GenAI) workloads led data centers to become the second-largest market for semiconductors in 2024, behind smartphones. Data center semiconductor revenue totaled $112 billion in 2024, up from $64.8 billion in 2023.
Key research takeaways:
- Samsung Electronics regained the #1 spot from Intel.
- Nvidia climbed to 3rd place.
- Semiconductor revenue in data centers almost doubled in 2024 to reach $112 billion.
- Global semiconductor revenue projected to total $705 billion in 2025.
The positive performance of the overall market impacted the ranking of several semiconductor vendors. Eleven vendors experienced double-digit growth and only eight of the top 25 semiconductor vendors posted revenue decline in 2024.
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