Top 15 Semiconductors Q2 2024: Intel Drops to 4th

The World Semiconductor Trade Statistics (WSTS) reports that the global semiconductor market achieved $149.9 billion in revenue during the second quarter of 2024. This represents a 6.5% increase from the first quarter of 2024 and an 18.3% rise compared to the same period last year. WSTS has also revised its Q1 2024 forecast upwards by $3 billion, adjusting the year-over-year growth rate to 17.8% from the previously estimated 15.3%.

In Q2 2024, major semiconductor companies saw robust revenue growth, with only MediaTek and STMicroelectronics experiencing declines among the top 15 firms. Memory companies led the charge with significant increases: SK Hynix and Kioxia both reported gains exceeding 30%, Samsung Electronics grew by 23%, and Micron Technology saw a 17% increase. The weighted average growth rate for these top 15 companies was 8%, with memory segments up 22% and non-memory sectors up 3%.

Nvidia continues to dominate the semiconductor sector with a reported Q2 2024 revenue of $28 billion, followed by Samsung with $20.7 billion. While Broadcom has yet to disclose its Q2 2024 figures, it is projected to reach $13 billion, surpassing Intel's anticipated $12.8 billion. Historically a leader in the industry, Intel has dropped to the fourth position this year.

Looking ahead to the third quarter of 2024, the revenue outlook remains positive. AMD expects a 15% revenue increase, driven by strong performance in data centers and client computing. Micron forecasts continued momentum in the memory market with a 12% growth, as supply continues to lag behind demand. Although Samsung and SK Hynix have not provided specific forecasts, both anticipate sustained demand for server AI.

However, a few companies project modest revenue growth for Q3 2024, around 1%, including Intel, MediaTek, and STMicroelectronics. Intel attributes its cautious outlook to excess inventory. In contrast, five other companies are expecting revenue growth rates between 4% and 8%. STMicroelectronics and NXP Semiconductors predict improvements in the automotive sector, though inventory challenges persist in the industrial domain. Texas Instruments forecasts strong performance in personal electronics. For the nine non-memory companies providing guidance, the projected weighted average revenue growth rate for Q3 2024 is 5%.

The substantial growth in the semiconductor market during the first half of 2024—up 18% from the same period in 2023—sets the stage for a strong year overall. Forecasts for 2024 vary, with Cowan LRA predicting a 14.4% increase and Statista Market Insights projecting a 20.7% rise. The consensus growth estimate stands at 17.0%, closely aligning with Gartner's 17.4% and WSTS's 16.0%.