The IC Design industry is currently facing a challenging economic situation with a decline in demand. However, there is some optimism for improvement in the coming quarters, as reported by TrendForce.
The latest statistics indicate that the revenue for the current quarter has remained steady compared to Q4 2022. This can be attributed to a combination of reduced demand and the ongoing pre-release period. Furthermore, there was a slight 0.1% quarter-on-quarter increase in the overall revenue, reaching a total of $33.86 billion.
However, the report from TrendForce provides hope for a potential rebound in the next quarter.
Qualcomm
Examining the data, Qualcomm maintains its dominant position, commanding a significant market share of 23.5% within the industry. The company’s smartphone division witnessed a notable 6.1% quarter-on-quarter increase, primarily driven by the release of Snapdragon Gen 2.
This, combined with major manufacturers like Samsung and OnePlus adopting the flagship chipset, contributed to revenue growth. However, the automotive division faced challenges, experiencing a decline for the quarter, resulting in an overall revenue increase of 0.6% for the company.
Nvidia
On the other hand, Nvidia, also known as ‘Team Green’, has been thriving according to TrendForce’s report. The company has seen a substantial rise in revenue, attributed to the surging demand for generative AI globally. The positive trend is expected to continue, with Nvidia projected to achieve significant gains in Q2.
The gaming and data center divisions of Nvidia witnessed a remarkable surge in Q1 revenue, with a substantial uplift of 20% and 10% respectively. This contributed to a significant boost in the company’s earnings, which skyrocketed by 13.5%, reaching a total of $6.73 billion.
Not only did the company experience impressive financial growth, but its market share also expanded, positioning Nvidia to potentially dethrone Qualcomm in the near future.
AMD and MediaTek
However, AMD and MediaTek continue to face challenges due to inventory correction, as the demand for their products has reached an all-time low. Both companies encountered a decline in revenue and market share, indicating a challenging business environment.
It is evident that these two companies have struggled to attract AI customers as effectively as Nvidia has with its current chip portfolio.
Source: Pro Pakistani