AI & Memory Chips Drive Growth Of Global Semiconductor Industry The Q3 2024 marked a recovery period for semiconductor companies, after navigating a tough environment with weak consumer demand in H1 2023, says a report by Counterpoint Market Research
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The global semiconductor industry's Q3 2024 revenue rose 17 per cent YoY to reach $158.2 billion, largely fueled by demand for artificial intelligence (AI) technologies and a recovery in the memory sector. NVIDIA and AMD emerged as major winners in the AI sector, witnessing notable growth in their AI-related business segments. This trend is projected to persist with the introduction of new products in Q4 2024. In the memory sector, companies like Samsung, SK Hynix, and Micron saw double-digit YoY percentage increases in sales, bolstered by production cuts and rising demand for generative AI storage solutions, according to a report by Counterpoint Market Research.
The Q3 2024 marked a recovery period for semiconductor companies, after navigating a tough environment with weak consumer demand in H1 2023 by effectively managing their inventory levels. Looking ahead, demand for semiconductor content is expected to increase in Q4 2024, driven by the evolving computing requirements for AI chips and memory.
Counterpoint's semiconductor revenue tracker indicates that most companies enjoyed strong quarterly results in Q3 2024, largely fueled by the ongoing AI boom. However, the automotive sector continues to face challenges, with varying YoY revenue declines reported among the companies under observation due to the ongoing destocking process. Additionally, the top 22 global semiconductor vendors accounted for 73.1 per cent of the market, unchanged from the year-ago period. This data reflects the overall resilience and adapting strategies of semiconductor firms in a fluctuating market environment.
