AI-Driven Demand Fuels Record Profits for Top Semiconductor Companies, with Nvidia Leading the Way
24 March 2025 · Uncategorized ·
Source: · https://finance.technews.tw/2025/03/17/top10-semi-corp-income-new-high/
The surge in demand for artificial intelligence (AI) propelled the combined net profits of global top ten semiconductor firms to a record-breaking $51.7 billion last quarter, marking an impressive 69% increase year-over-year compared with the same period in 2023. This represents a staggering 70% growth overall and sets new historical records; NVIDIA alone contributed approximately 40% of this expansion.
According to Nikkei on January 15th, despite slower demand from electric vehicle and industrial machinery sectors, significant AI data center demand fueled the remarkable profit surge for these leading firms during October-December 2023 (or September-November/November-January). Among global chipmakers, six companies reported improved profits last quarter. However, Intel, Texas Instruments (TI), AMD, and STMicroelectronics experienced declines.
NVIDIA’s net profit surged by an impressive 80%, reaching $22 billion—roughly 40% of the total combined profits. TSMC, a key manufacturer for NVIDIA, also achieved record-high profitability with its own earnings increasing to $11.5 billion and growing at a rate of 55%. The robust demand for AI-specific High Bandwidth Memory (HBM) contributed significantly to SK Hynix’s turnaround; the South Korean firm shifted from a loss of $100 million last year to a profit of $570 million, while Samsung Electronics saw its profits grow by 19%, reaching $5.4 billion.
Conversely, Intel reported net losses amounting to $126 million (compared with a previous quarter’s profit of $260 million), TI's earnings decreased by 12%, STMicroelectronics plummeted an alarming 68%, and AMD saw its profits decline by 28% year-over-year.
Market analysts anticipate continued growth for AI semiconductor companies, predicting that combined net income for the top ten chipmakers in the upcoming quarter (January–March) will increase approximately threefold compared with last year's figures. Omdia of Britain forecasts a substantial rise in data center investments from tech giants like GAFAM by 50%.
Nikkei’s statistics encompass TSMC, NVIDIA, Samsung Electronics, STMicroelectronics, Qualcomm, Intel, AMD, Texas Instruments (TI), Micron Technology, and SK Hynix.
The World Semiconductor Trade Statistics Association predicted on December 3rd that sustained AI data center investments and the increasing prevalence of products with integrated AI functions will further expand semiconductor demand. Global semiconductor sales are forecasted to grow by 11.2% year-over-year, reaching $697 billion by the end of 2025.
(Translated from MoneyDJ News; Image source: Freepik)
According to Nikkei on January 15th, despite slower demand from electric vehicle and industrial machinery sectors, significant AI data center demand fueled the remarkable profit surge for these leading firms during October-December 2023 (or September-November/November-January). Among global chipmakers, six companies reported improved profits last quarter. However, Intel, Texas Instruments (TI), AMD, and STMicroelectronics experienced declines.
NVIDIA’s net profit surged by an impressive 80%, reaching $22 billion—roughly 40% of the total combined profits. TSMC, a key manufacturer for NVIDIA, also achieved record-high profitability with its own earnings increasing to $11.5 billion and growing at a rate of 55%. The robust demand for AI-specific High Bandwidth Memory (HBM) contributed significantly to SK Hynix’s turnaround; the South Korean firm shifted from a loss of $100 million last year to a profit of $570 million, while Samsung Electronics saw its profits grow by 19%, reaching $5.4 billion.
Conversely, Intel reported net losses amounting to $126 million (compared with a previous quarter’s profit of $260 million), TI's earnings decreased by 12%, STMicroelectronics plummeted an alarming 68%, and AMD saw its profits decline by 28% year-over-year.
Market analysts anticipate continued growth for AI semiconductor companies, predicting that combined net income for the top ten chipmakers in the upcoming quarter (January–March) will increase approximately threefold compared with last year's figures. Omdia of Britain forecasts a substantial rise in data center investments from tech giants like GAFAM by 50%.
Nikkei’s statistics encompass TSMC, NVIDIA, Samsung Electronics, STMicroelectronics, Qualcomm, Intel, AMD, Texas Instruments (TI), Micron Technology, and SK Hynix.
The World Semiconductor Trade Statistics Association predicted on December 3rd that sustained AI data center investments and the increasing prevalence of products with integrated AI functions will further expand semiconductor demand. Global semiconductor sales are forecasted to grow by 11.2% year-over-year, reaching $697 billion by the end of 2025.
(Translated from MoneyDJ News; Image source: Freepik)