The top IC design houses have experienced significant revenue growth in the third quarter of 2023, with NVIDIA leading the pack due to high demand for generative AI and LLMs, while Qualcomm's market share has been eroded.
- NVIDIA has experienced a staggering 45.7% increase in revenue, primarily driven by sustained demand for generative AI and LLMs.
- Qualcomm has witnessed a 2.8% QoQ increase in third-quarter revenue, thanks to the launch of its flagship AP Snapdragon 8 Gen 3 and the release of new Android smartphones.
- AMD has experienced an 8.2% increase in third-quarter revenue, fueled by the widespread adoption of its 4th Gen EPYC server CPUs and favorable impact of seasonal laptop stockpiling.
According to a recent report by TrendForce, the third quarter of 2023 has been a period for the world’s leading IC design houses. With a remarkable 17.8% increase in total revenue, reaching an unprecedented US$44.7 billion, these companies have experienced significant growth. The surge can be attributed to a strong season of stockpiling for smartphones and Laptops, coupled with a rapid acceleration in the shipment of generative AI chips and components.
One standout performer in terms of revenue and market share is nVidia, which has capitalized on the AI boom. With a staggering 45.7% increase in revenue to US$16.5 billion, NVIDIA’s exceptional growth is primarily driven by sustained demand for generative AI and LLMs. Its data center business, accounting for nearly 80% of its revenue, has played a pivotal role in this success.
Qualcomm, another important player in the industry, has witnessed a 2.8% QoQ increase in third-quarter revenue, amounting to approximately US$7.4 billion. This growth can be attributed to the launch of its flagship AP Snapdragon 8 Gen 3 and the release of new Android smartphones. However, NVIDIA’s rapid expansion has eroded Qualcomm’s market share, which now stands at 16.5%.
Broadcom, with its strategic focus on AI server-related products like AI ASIC chips, high-end switches, and network interface cards, has managed to offset weaker demand in server storage connectivity and broadband. This maneuvering has resulted in a 4.4% QoQ revenue boost to US$7.2 billion.
AMD has experienced an 8.2% increase in third-quarter revenue, amounting to US$5.8 billion. This success can be attributed to the widespread adoption of its 4th Gen EPYC server CPUs by cloud and enterprise customers, as well as the favorable impact of seasonal laptop stockpiling.
MediaTek, on the other hand, has seen its revenue rise by 8.7% to US$3.5 billion in the third quarter. This growth is fueled by a healthy replenishment demand for smartphone APs, WiFi 6, and mobile/laptop PMIC components as inventories across brand clients stabilize.
Marvell has also made significant gains, with a 4.4% QoQ increase in third-quarter revenue, reaching US$1.4 billion. The company’s success can be attributed to the growing demand for generative AI from cloud clients and the expansion of its data center business, despite declines in sectors like enterprise networking and automotive.
While some sectors, such as TV and networking, still face uncertainties, leading to a cautious approach from clients, the outlook for the top ten IC design houses remains positive. TrendForce predicts sustained growth in the upcoming fourth quarter, supported by a gradual normalization of inventory levels and a modest seasonal rebound in the smartphone and notebook market. Furthermore, the global surge in LLMs extends beyond CSPs, internet companies, and private enterprises, reaching regional countries and small-to-medium businesses, further bolstering this positive revenue trend.
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Background Information
About AMD:
AMD, a large player in the semiconductor industry is known for its powerful processors and graphic solutions, AMD has consistently pushed the boundaries of performance, efficiency, and user experience. With a customer-centric approach, the company has cultivated a reputation for delivering high-performance solutions that cater to the needs of gamers, professionals, and general users. AMD's Ryzen series of processors have redefined the landscape of desktop and laptop computing, offering impressive multi-core performance and competitive pricing that has challenged the dominance of its competitors. Complementing its processor expertise, AMD's Radeon graphics cards have also earned accolades for their efficiency and exceptional graphical capabilities, making them a favored choice among gamers and content creators. The company's commitment to innovation and technology continues to shape the client computing landscape, providing users with powerful tools to fuel their digital endeavors.Latest Articles about AMD
About Broadcom:
Founded in 1961, Broadcom is a leading global technology company headquartered in the United States. They specialize in semiconductor and infrastructure software solutions. Broadcom's innovations in connectivity, networking, and storage technologies have made them a key player in the industry, with a focus on enabling seamless communication and connectivity in the digital world.Latest Articles about Broadcom
About MediaTek:
MediaTek Inc. is a Taiwanese semiconductor company that designs and manufactures a wide range of system-on-chip (SoC) solutions for various consumer electronics, including smartphones, tablets, smart TVs, wearables, and IoT (Internet of Things) devices. Founded in 1997, MediaTek has become a important player in the semiconductor industry, known for its innovative chipsets that offer a balance of performance, power efficiency, and affordability.Latest Articles about MediaTek
About nVidia:
NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.Latest Articles about nVidia
About Qualcomm:
Qualcomm, a leading American global semiconductor and telecommunications equipment company, has played a pivotal role in shaping the modern technology landscape. Founded in 1985, Qualcomm has been at the forefront of innovation, particularly in the realm of mobile communications and wireless technology. The company's advancements have been instrumental in the evolution of smartphones, powering devices with their Snapdragon processors that deliver exceptional performance and efficiency. With a strong commitment to research and development, Qualcomm has enabled the growth of 5G technology, paving the way for faster and more connected experiences.Latest Articles about Qualcomm
Technology Explained
EPYC: EPYC is a technology designed by computer chip manufacturer AMD for use in the server and data center industry. It was introduced in June 2017 and features an innovative design to improve performance and power efficiency. EPYC processor technology is based on an innovative 14nm processor architecture, allowing up to 32 high-performance cores in a single socket. This allows for more efficient processing power, increased memory bandwidth, and greater compute density. EPYC is now widely used in the data center and cloud computing industry and provides benefits such as greater scalability, increased resource efficiency, and advanced virtualization capabilities. Additionally, EPYC technology is used in data intensive servers like server farms, gaming, and virtualization platforms. EPYC ensures that even with large deployments in multi-processor environments, power consumption and performance levels are optimized to ensure maximum efficiency.
Latest Articles about EPYC
Snapdragon: The Snapdragon processor is a cutting-edge technology developed by Qualcomm Technologies, Inc. It is a powerful and efficient mobile processor that is used in many of today's smartphones, tablets, and other mobile devices. Snapdragon processors are also used in some computers, providing a powerful and efficient computing experience. Snapdragon processors are designed to provide a high level of performance, while also being energy efficient. They are used in a variety of applications, including gaming, virtual reality, and artificial intelligence. Snapdragon processors are also used in many of today's laptops, providing a powerful and efficient computing experience. The Snapdragon processor is a great choice for those looking for a powerful and efficient processor for their computer.
Latest Articles about Snapdragon
WiFi 6: The latest technology in the computer industry is WiFi 6, also known as 802.11ax. WiFi 6 offers faster speeds for data transmission than other wifi standards, as well as significantly improved network reliability and greater energy efficiency. It’s main application is the use of Internet of Things (IoT) devices where it provides improved data rates and higher network utilization. WiFi 6 is also being used to increase the quality of media streaming for online gaming and 4K streaming. Because of its improved speeds, low power consumption, and greater efficiency, WiFi 6 is quickly becoming the new standard for Wi-Fi networks and will be widely used in the computer industry.
Latest Articles about WiFi 6
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