The AI hype-train has been rolling for a while now, and reveals no indicators of slowing down. Whereas public notion of AI tech continues to range, the semiconductor market seems to be booming on account of all that funding, because the Semiconductor Business Affiliation (SIA) has introduced that world semiconductor gross sales elevated 23.2% within the third quarter of this 12 months in comparison with the identical interval in 2023.
That equates to as much as $166 billion value of income, with a reported $55.3 billion in gross sales recorded in September alone (through Wccftech).
SIA President and CEO John Neuffer mentioned: “The worldwide semiconductor market continued to develop through the third quarter of 2024, with quarter-to-quarter gross sales growing on the largest charge since 2016.
“Gross sales in September reached the market’s highest-ever month-to-month whole, pushed by a 46.3% year-to-year enhance within the Americas.”
Nonetheless, it is not simply the Americas seeing large demand for high-end silicon. Yr-to-year gross sales had been additionally up in September for China by 22.9%, the Asia/Pacific area by 18.4%, and Japan by 7.7%. It wasn’t all steadily climbing traces although, as Europe’s gross sales dropped by 8.2% in the identical month.
This tracks with the most recent monetary disclosures from TSMC, the worlds main producer of high-end chips. The Taiwanese firm just lately introduced a 3rd quarter income enhance of 39% year-over-year, with third quarter income equating to $23.5 billion.
Definitely, Nvidia appears to be on the peak of the present semiconductor increase, because it’s as soon as once more overtaken Apple to take a seat high of the market cap desk, with a present estimated worth of $3.652 trillion. Demand for its new Blackwell enterprise GPUs has been immense, with business titans like Amazon, Google, Microsoft and Oracle inserting orders within the tens of hundreds.
And that is to not point out OpenAI, Meta and X. It looks like any massive tech firm value understanding has been leaping on the Nvidia prepare, and it is not like its earlier technology Hopper H100 have been gradual to promote, both. Meta has been shopping for the enterprise fashions en masse for a while now, and with proposed targets of 350,000 GPUs purchased by the top of this 12 months, that is been estimated to work out to $7 billion’s value of the older silicon bought in whole.
The money is flowing, and the AI demand for high-end chips seems to be taking the semiconductor market to new heights. No increase lasts perpetually, after all, however these newest income figures present that it is at present an excellent time to be within the chip-making enterprise for some.
