Q2 Revenue for Leading Global IC Houses Surges by 12.5% with Q3 Poised for Record

According to a recent report by TrendForce, the top 10 global IC design powerhouses experienced a significant boost in Q2 revenue, reaching a staggering $38.1 billion, marking a 12.5% increase from the previous quarter. This surge in revenue can be attributed to the AI-driven inventory stocking frenzy that has taken hold across the supply chain.

In this period of growth, nVidia emerged as the new leader in IC design, dethroning Qualcomm from its long-held position. NVIDIA’s success can be attributed to the global demand for generative AI and large language models, with CSPs, internet giants, and enterprises driving the adoption of these technologies. The company’s data center revenue saw an impressive 105% increase, fueled by shipments of advanced systems like Hopper and Ampere architecture HGX, as well as the high-performing InfinBand. Additionally, NVIDIA’s gaming and professional visualization sectors thrived with the launch of new products, contributing to a Q2 revenue of $11.33 billion, a remarkable 68.3% surge.

On the other hand, Qualcomm faced challenges in Q2 as the Android smartphone sector experienced dwindling demand, and Apple’s modem pre-purchases resulted in a subdued seasonal rhythm. This led to a 9.7% decline in revenue, totaling around $7.17 billion. Broadcom also faced headwinds, with drops in server storage, broadband, and wireless revenue offsetting the benefits of AI-driven demand for high-end switches and routers. As a result, their second-quarter revenue remained relatively unchanged at approximately $6.9 billion.

AMD’s Q2 performance plateaued at around $5.36 billion due to a slump in gaming GPU sales and its embedded segment operations. However, MediaTek witnessed a resurgence after several quarters of inventory recalibration, with components like TV SoCs and Wi-Fi stabilizing. The company’s Q2 revenue reached a solid $3.2 billion, driven by urgent TV orders and escalating shipments for mobile phones, smart platforms, and power management ICs.

Marvell, despite benefiting from AI deployments in data centers, faced challenges with a decline in On-Premise Servers. Weak end-user demand and drops in revenue from data centers, telecom infrastructure, and enterprise networking resulted in a 1.4% decline in Q2 revenue, totaling around $1.33 billion. Meanwhile, Taiwan’s Novatek flourished as customers replenished TV-related inventories and introduced new products like OLED DDI. Realtek also experienced growth, thanks to supply chain restocking of PC/NB-centric ICs, reporting quarterly growths of 24.7% and 32.6%, respectively.

The ninth spot on the list was secured by Will Semiconductor, with a Q2 revenue of $528 million, experiencing a modest decline of 1.9%. Following closely behind is MPS, a US-based power IC company, with Q2 revenue of $441 million, representing a slip of approximately 2.2%.

Looking ahead to Q3, while inventory levels across companies paint a more positive picture than H1, caution is urged due to a pervasive end-user demand slump. However, there is a silver lining as CSPs, internet titans, and private firms increasingly adopt generative AI and large language models. TrendForce predicts that the top ten global IC design giants will continue their double-digit ascent in Q3, potentially reaching record-breaking figures.

Background Information

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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.

  

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About Apple:

Apple Inc., known for its iconic products, was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976. The company has since revolutionized the technology landscape with innovations like the Macintosh computer, iPod, iPhone, iPad, and more. for its emphasis on design, user experience, and ecosystem integration, Apple's devices and software have made a profound impact on various industries. With a commitment to quality and innovation, Apple remains a global technology leader.

  

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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.

  

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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.

  

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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.

  

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Technology Explained

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GPU: GPU stands for Graphics Processing Unit and is a specialized type of processor designed to handle graphics-intensive tasks. It is used in the computer industry to render images, videos, and 3D graphics. GPUs are used in gaming consoles, PCs, and mobile devices to provide a smooth and immersive gaming experience. They are also used in the medical field to create 3D models of organs and tissues, and in the automotive industry to create virtual prototypes of cars. GPUs are also used in the field of artificial intelligence to process large amounts of data and create complex models. GPUs are becoming increasingly important in the computer industry as they are able to process large amounts of data quickly and efficiently.

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OLED: Organic light-emitting diode (OLED) technology is a cutting-edge display technology that has revolutionized the computer industry by producing superior image quality and superior energy efficiency. OLED technology works by using organic compounds to create an efficient and flexible light source. This type of technology has enabled thinner and lighter designs as well as improved color range and resolution. OLED technology is currently used in laptop displays and is increasingly used in televisions and mobile devices. Its benefits, such as relatively low power consumption and extraordinary brightness, give a more vivid and more powerful image even in dim areas. OLED technology has also improved computer performance, as its power efficiency passes on to other computer components and leads to extended battery life. OLED technology also features shorter response time and full color reproducibility, making it ideal for fast-paced action games.

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