Gartner Says Worldwide Semiconductor Revenue Grew 21% in 2024 — Gartner

Global semiconductor revenue surged 21% in 2024, reaching $655.9 billion, according to a new report by Gartner. The dramatic rise was driven by soaring demand for artificial intelligence infrastructure, marking a decisive shift in the market’s growth trajectory.

This performance follows a slump in 2023, when total semiconductor revenue fell to $542.1 billion. Analysts say the rebound reflects more than just cyclical recovery. Instead, it signals a structural transformation as AI adoption accelerates across cloud, enterprise and consumer sectors.

Gaurav Gupta, at Gartner.

NVIDIA Leads Market Reshuffle

For the first time, NVIDIA took the top spot among semiconductor vendors, fueled by unprecedented demand for its AI-optimized graphics processing units (GPUs). The company’s rise dislodged Samsung and Intel, which historically dominated the top two positions.

“NVIDIA’s ascension to the number one position in global semiconductor revenue illustrates how demand is shifting toward AI-centric computing,” said Alan Priestley, VP Analyst at Gartner. “Organizations are rapidly deploying generative AI and advanced machine learning workloads, and this is fundamentally reshaping chip purchasing patterns.”

Intel, by contrast, saw only 0.8% revenue growth in 2024 and fell behind both Samsung and NVIDIA. Gartner attributed this lag to slow traction in AI-specific processor development and intensifying competition across its core markets.

Memory Sector Powers Market Gains

Memory chips were another major growth driver. Gartner reported that the memory segment expanded by 73.4% in 2024, led by pricing recovery and increased demand from data center operators scaling out AI training environments.

Samsung, the world’s largest memory chip producer, benefitted substantially from the rebound in DRAM and NAND flash pricing. The company reclaimed the second spot in overall revenue rankings behind NVIDIA.

According to Gartner, favorable supply-demand dynamics and increased inventory replenishment cycles contributed to the strong memory performance.

Structural Shift in the Semiconductor Industry

Gartner’s data suggests the current growth is not just a cyclical spike but part of a broader, AI-fueled realignment. The report highlighted the following key developments:

Generative AI and inference workloads are now primary factors in data center hardware investment, displacing more traditional server and PC demand.

Fabless chip design firms, especially those focused on accelerators and domain-specific architectures, are outperforming vertically integrated incumbents.

Enterprise IT spending on AI hardware is creating tailwinds for GPU makers, memory suppliers and interconnect technologies.

“AI is no longer a niche workload,” said Gaurav Gupta, VP Analyst at Gartner. “It’s becoming foundational to enterprise strategy, and semiconductor manufacturers that align with that reality are reaping the benefits.”

Looking Ahead: 2025 and Beyond

Analysts believe semiconductor revenue will remain strong in 2025, though the pace of growth may normalize depending on macroeconomic conditions and inventory trends. However, the long-term outlook remains bullish for AI-aligned chipmakers.

Gartner expects demand for memory, compute accelerators and high-bandwidth interconnects to remain elevated as AI workloads grow in complexity and scale. The research firm also emphasized the growing importance of fab capacity investments, as foundries race to meet next-generation performance requirements.

Strategic Implications

The 2024 results point to a broader recalibration of the semiconductor landscape. Industry observers note that:

Manufacturers will need to prioritize capital expenditures on AI-specific architectures and advanced packaging.

Investors are increasingly betting on companies with exposure to generative AI infrastructure, particularly GPU and high-performance memory suppliers.

Enterprise buyers must prepare for hardware budget pressure, especially as AI workloads expand across use cases.

Market Context

The industry’s $655.9 billion in 2024 revenue places it well above the previous high-water mark of $595 billion recorded in 2021. The 2024 gains also mark one of the strongest single-year expansions since the early 2000s.

Still, Gartner cautioned that sustained momentum will depend on execution across supply chains, ongoing innovation in AI compute, and the ability of legacy vendors to pivot toward emerging demand patterns.

To learn more, visit: www.gartner.com