December 25, 2024 /SemiMedia/ — According to a recent report by Omdia, global semiconductor market revenue for the first three quarters of 2024 reached $494 billion, a 26% increase compared to the same period in 2023, adding $102 billion. The growth was largely driven by the rapid expansion of artificial intelligence (AI) and strong demand for related semiconductor components.

NVIDIA and SK Hynix were particularly successful in capitalizing on the AI boom. NVIDIA benefited from its GPUs, while SK Hynix saw significant growth through its high-bandwidth memory (HBM). Among the 127 semiconductor companies analyzed by Omdia, only these two saw their revenues more than double in the first three quarters of 2024 compared to the same period last year.

Omdia Senior Analyst Cliff Leimbach stated, "The high demand for AI is expected to make 2024 a record-breaking year. The semiconductor revenue for the first three quarters has already surpassed the total for 2020. However, this growth is not evenly distributed across the industry. The industrial sector, for example, is facing weak demand, with a projected 16% year-on-year decline in 2024."

Looking ahead to the fourth quarter, Omdia forecasts continued growth in semiconductor revenue, with an expected 4.5% increase to nearly $186 billion. While AI-focused companies are likely to continue outperforming, growth in non-AI sectors will face significant challenges.