Intel Slips to Third Place Among Chip Firms in 1Q24

In the first quarter of 2024, Samsung emerged as the leader in the tech industry, propelled by a surge in demand for memory chips, particularly DDR5 chips used in datacenters for generative AI setups. This uptick in demand played a crucial role in Samsung's ascent to the top spot, showcasing the company's prowess in meeting market needs.

Following closely behind Samsung, Nvidia secured the second position in the rankings by Counterpoint. Nvidia's performance in 1Q24 was marked by exceptional revenue growth, continuing its trend of quadrupling sales year-on-year. The company's success can be attributed to its stronghold in the GPU-for-AI chip sector and the increasing adoption of generative AI, which has fueled a significant uptick in sales within the data center segment.

Counterpoint's analysis also shed light on Intel's performance in the same period, revealing a 14 percent decline in revenue compared to the previous quarter. This dip was primarily attributed to soft demand at Intel foundry, Altera, and Mobileye divisions, highlighting challenges faced by the tech giant in certain market segments.

Meanwhile, companies like SK Hynix and Micron experienced positive outcomes in 1Q24, benefiting from the buoyant memory market. In contrast, Qualcomm and Broadcom faced setbacks akin to Intel, with single-digit percentage declines in revenue due to underperformance in key business areas, as noted by Counterpoint's assessment.

As the tech landscape continues to evolve rapidly, the latest insights from Counterpoint Research provide a comprehensive overview of the industry's dynamics in 1Q24. With Nvidia's remarkable sales growth, Samsung's strategic positioning, and the challenges encountered by industry stalwarts like Intel, the competitive landscape is undergoing significant shifts, setting the stage for further developments in the coming quarters.