Thursday, July 4, 2024 06:11 PM
NVIDIA Leads Semiconductor Market Growth in 1Q24
- Consumer segment faced largest drop of 10.4%
- Data processing division saw a 3.7% revenue increase
- Analysts anticipate demand improvement in second half of 2024
Image Credits: en_prnasisaThe semiconductor market in 1Q24 saw declines in various segments, with NVIDIA leading growth. Despite challenges, the industry is expected to rebound in the second half of the year.
The semiconductor market experienced a 2% decline in the first quarter of 2024, dropping to $151.5 billion. This dip follows a typical trend after a strong fourth quarter driven by seasonal demand. Various segments within the semiconductor market faced declines during this period. Notably, the consumer segment saw the largest drop of 10.4%, while the industrial segment fell by 8.5% due to inventory adjustments. Even the automotive segment, which had been growing steadily, experienced a 5.1% decline in 1Q24.
On a positive note, the data processing division witnessed a 3.7% increase in revenue, primarily due to the high demand for NVIDIA's chips and other AI-related products. NVIDIA's market share expanded to 14.5% of the total semiconductor market revenue, surpassing industry giants like Samsung and Intel. SK Hynix and Micron also saw improvements in their market share rankings, thanks to the resurgence of memory growth.
Despite challenges in the automotive sector, the auto semiconductor market remains a promising area for long-term growth. The Global Semiconductor Manufacturing Market Tracker and the Pure Play Foundry Tracker reports indicate fluctuating factory utilizations within the semiconductor industry. While semiconductor revenue is on the rise, fab utilization rates have remained relatively low.
Analysts anticipate an improvement in demand in the second half of 2024, leading to inventory corrections and increased factory utilization rates. Despite current obstacles, the semiconductor industry is poised for positive growth in the coming years, driven by evolving market demands and technological advancements.
The semiconductor market in 1Q24 experienced a decline following a strong previous quarter, with various segments facing challenges. However, sectors like data processing showed growth, and the industry is expected to rebound in the second half of the year. Despite short-term setbacks, the semiconductor market remains resilient and poised for long-term success.
