Nvidia’s revenue is expected to grow significantly this quarter

With the IC industry in a slump due to diminishing market demand, a new report from TrendForce suggests that a rebound is in the offing as inventory conditions improve over the coming quarters.

In the first quarter of 2023, IC design companies, led by Qualcomm, endured significant pressure in terms of revenue, with some even experiencing a downturn. Overall revenue increased only slightly by 0.1%, reaching $33.86 billion. Qualcomm, dominating the industry with a 23.5% share, realized a 6.1% quarter-on-quarter growth in its smartphone division, largely owing to the release of the second-generation Snapdragon 8 platform and its adoption by numerous manufacturers. However, its automotive business prospects are less encouraging, negatively impacting overall revenue.

Over the past few months, the fervor for artificial intelligence tools, led by ChatGPT, has swept the globe, substantially driving demand for data center GPUs such as the A100 and H100 and in turn, spurring Nvidia’s revenue growth. The gaming and data center businesses in the first quarter witnessed quarter-on-quarter increases of 20% and 10% respectively, contributing to a swift expansion of the industry revenue share. It is projected that Nvidia will achieve significant revenue growth in the second quarter, potentially usurping Qualcomm to claim the industry’s top spot imminently.

Corporations like AMD and MediaTek still face inventory adjustments, and together with a decline in market demand, are confronting issues of revenue and share reduction. They seem not to have benefited from the recent AI craze, at least not as quickly as Nvidia in attracting customers. TrendForce anticipates a rebound in the IC industry over the coming quarters as inventory levels gradually restore. The launch of numerous major games this year is likely to boost the industry’s profitability, though tangible effects may not be discernible until the year’s end.