Samsung notably reclaimed its position as the leader in semiconductor revenue rankings, rising 18% YoY. Meanwhile, SK hynix and Micron reported remarkable revenue increases of 94% YoY and 93% YoY, respectively. Samsung’s memory chip division benefited from strong demand for both AI and traditional servers. Similarly, SK hynix and Micron experienced growth driven by high demand for HBM, which helped improve their margins to some extent.

NVIDIA’s 3Q 2024 revenue surged 94% YoY, helping the brand secure the seventh overall ranking. The growth was due to NVIDIA’s dominant presence in the market for GPUs utilized in AI and high-performance computing. Looking ahead, we expect NVIDIA to continue to excel in AI, as its Blackwell production shipments are set to start in the 4Q 2025 and are expected to ramp up into fiscal 2026.

In contrast, Intel encountered difficulties, with its 3Q 2024 earnings falling 6% YoY due to significant restructuring expenses and a major cost-cutting initiative. Additionally, the company faced substantial impairment charges, primarily linked to accelerated depreciation of its Intel 7 process node manufacturing assets and goodwill impairment in the Mobileye division, which severely hurt its margins. Intel has struggled with its core businesses and has been unable to make significant strides in AI, despite efforts to transform its foundry business into an independent subsidiary. This strategic shift is expected to require time before yielding positive outcomes.

The automotive industry has been grappling with significant challenges that have resulted in revenue declines across a broad spectrum due to ongoing destocking processes and weak sales. Key players such as STMicroelectronics, Infineon, and Texas Instruments have reported notable declines in revenue, hurt by heightened competition in China and decreasing demand for electric vehicles (EVs). This situation underscores the sector’s struggle to adapt to the changing market dynamics and consumer preferences, which are likely to continue influencing performance in the short term.

Looking ahead, AI technologies, including servers, PCs, and smartphones, are expected to remain major revenue drivers. The memory sector is poised to benefit from the increased demand for storage solutions linked to AI advancements, e.g. HBM. However, the recovery of the automotive industry may remain slow due to existing inventory adjustments and market challenges.