Nvidia's meteoric rise in the semiconductor market is shaking up the industry, fueled by skyrocketing demand for AI chips.
As Nvidia cements its position with cutting-edge GPUs and dominance in AI technology, longtime giants Samsung and Intel are struggling to keep pace.
According to data presented by Stocklytics.com, Nvidia's market share has tripled over the past four years, reaching 7.3%, while Samsung and Intel have seen their market shares plunge.
Intel's Market Share Halves in Four Years, Samsung Loses 1.8%
Before 2020, the semiconductors market was dominated by two giants, Samsung and Intel, which together held nearly 30% of the market, leaving all other competitors far behind. But Nvidia changed the game, reshaping the industry and quickly becoming one of the largest players in the semiconductor landscape.
With its advanced GPUs and AI-driven innovations, Nvidia is doing much more than just competing in the semiconductors market; it's redefining the industry while steadily growing its market share each year.
According to data from Statista and Gartner, Nvidia's share surged from just 2.3% in 2020 to 7.3% in 2024, a threefold increase in just four years.
However, as Nvidia's influence grows, former market leaders are losing ground. Samsung's market share declined by 1.8% in this period, falling from 12.4% to 10.6%. Still, that is nothing compared to Intel, which has suffered the biggest blow.
While its rivals Nivida and other silicon chip companies enjoyed double-digit growth, Intel struggled, with its stock remaining deep in the red zone. Mounting competition, major manufacturing missteps, and ongoing business setbacks have severely impacted Intel's performance. In 2024, the company's stock crashed by 60%, making it the biggest drag on the S&P 500, pulling the index down by 1.3%.
The company's share in the semiconductor market also plummeted. Last year, Intel held 7.9% of the market, 2% less than a year before that, and less than half of what it had in 2020
However, not all semiconductor firms struggled. As one of the five largest players in the market, the South Korean SK Hynix was also on the winner's side, increasing its market share by 2.3% year-over-year and 1.5% over four years.
At This Growth Rate, Nvidia Could Lead the Market in 2025
Unlike its rivals, many of whom have seen their market shares stagnate or decline, Nvidia has been on a steady road of growth.
Gartner data shows that since 2021, the company's market share has grown by an average of 60% per year, making it the third-largest player in the industry. If this trend continues, Nvidia could surpass Samsung and become the global market leader this year.
What does this mean for Nvidia's future? The numbers speak for themselves.
According to Statista projections, the semiconductors industry is expected to hit a $702 billion value in 2025, growing by $95 billion year-over-year.
With AI, cloud computing, and autonomous tech fuelling demand and governments worldwide investing heavily in chip production to secure supply chains and reduce reliance on geopolitical rivals, this figure is expected to jump over one trillion dollars by 2030.
