In the third quarter of this year, Nvidia achieved remarkable financial success, with revenue soaring to $18.12 billion. The GPU design giant has now surpassed Intel, TSMC, and Samsung to become the leading and most profitable semiconductor chip brand globally. This significant climb from the fourth position in the first quarter of 2023 was driven by the thriving trend of Generative AI (Gen AI).
According to financial analyst Dan Nystedt, who compiled data from Intel, Nvidia, Samsung Semiconductor, and TSMC since the first quarter of 2021, Nvidia is now the world’s most profitable chip company. In the third quarter of this year, Nvidia’s revenue reached an impressive $18.12 billion, with profits soaring to $10.42 billion—a remarkable 206 percent year-over-year surge. This success is largely attributed to the sale of AI chips for data centers.
As noted by Nystedt on X (formerly Twitter), “Nvidia swooped in and took the third-quarter chip industry revenue crown, beating out TSMC, Intel, and Samsung as the generative AI trend continues to strengthen.” He added, “Nvidia could win second place in full-year chip revenue in 2023, beating Intel and Samsung, while TSMC remains on track to take the title.”
While Samsung holds the title of the largest global memory chip manufacturer, it has faced challenges such as declining memory chip prices and cautious client behavior. Despite these obstacles, the demand for memory chips is expected to rise in the coming quarters.
Samsung Semiconductor, Samsung’s chip designing and manufacturing arm, reported revenue of $12.52 billion but faced losses of $2.86 billion. TSMC, the world’s largest contract chip manufacturer, generated $17.28 billion in revenue and $7.21 billion in profit. Intel’s revenue for the third quarter of 2023 was $14.16 billion, but it incurred a loss of $8 million.
In October, Foxconn, a leading global contract electronics manufacturer based in Taiwan, announced plans for a groundbreaking data center infrastructure in collaboration with Nvidia. This data center, incorporating Nvidia chips and software, will serve a diverse range of applications, particularly in the field of autonomous vehicles.
Nvidia’s recent statement about new export restrictions impacting the sale of certain high-end AI chips in China contributed to a threefold increase in Nvidia’s shares throughout 2023. This propelled the company’s market value beyond $1 trillion, driven by the pivotal role of its chips in AI applications.
Joseph Gutierrez holds Master’s degree in Business Administration. As an avid day trader, he is a master of technical analysis and writes tirelessly on how stocks are trading. Joseph has extensive knowledge in technical analysis & news writing. He delivers news reports regarding Market category.
