From Downturn to Domination: NVIDIA Rides AI Wave, Leaving Chip Giants Behind

This year, amidst a downturn in the semiconductor market, numerous industry giants have experienced varying degrees of impact. In stark contrast, the global surge in artificial intelligence (AI) has propelled NVIDIA, a company that has painstakingly cultivated its presence in this field for years, against the odds. NVIDIA has emerged as the primary beneficiary, reaping a dual bounty of revenue and reputation, and solidifying its market leadership in data centers and gaming graphics cards.

According to a report by DigiTimes, 2023 may witness the rise of a new sovereign in the semiconductor industry, and it’s not Samsung, which has posed a strong challenge to Intel over the past years. Instead, NVIDIA, riding the AI wave, has become the industry’s shining star.

Market research agencies predict that NVIDIA, in its fiscal year ending January 2024, is expected to achieve a revenue of $58.8 billion, doubling its revenue from the same period last year. This remarkable growth is anticipated to eclipse both Intel and Samsung, positioning NVIDIA at the pinnacle of semiconductor revenue. In comparison, Intel’s revenue during the same period is estimated at $53.9 billion, marking a 14% decrease from the previous year, while Samsung’s semiconductor division is projected to garner $49 billion, a 34% decline from the previous year.

Since 1992, Intel has firmly held the top spot in semiconductor revenue until 2017. Starting in 2018, Samsung began its assault on Intel. Although Samsung successfully claimed the top position in 2021 and 2022, its lead over Intel was marginal. The rise of AI this year has altered the competitive landscape between Intel and Samsung, with NVIDIA, previously trailing significantly behind, emerging as the ultimate victor.