Technology
The Dominance of Google and Facebook in One Chart
The Dominance of Google and Facebook in One Chart
For digital ads, everyone else is begging for scraps.
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
Over the next couple years, digital advertising is expected to pass television to become the largest ad market in existence.
One would think that this simple fact should translate to a bright future for many publishers, but the reality seems to be quite different. That’s because digital advertising is increasingly dominated by just two players, and everyone else is just begging for scraps.
The Ad Duopoly
Today, close to $0.60 of every dollar spent on digital advertising goes to Google and Facebook.
The crazy thing is that these are still early days, especially for Facebook, which grew its digital ad revenue by 59% last year. The social media company recently smashed Wall Street’s expectations again, as it revealed that Facebook’s mobile business alone was bigger than its entire business back in 2015 Q3.
This lopsided growth is quite the juxtaposition to the media stalwarts of the world.
Iconic brands such as The New York Times have struggled to make a full transition to digital, making only $200 million per year from the online ad side of their business. That makes the Times, along with other traditional media companies like News Corp, Time Inc, or Hearst, too “small” to even show up on our chart.
It’s a Platform Kind of World
In the digital advertising landscape, it’s all about the power of platforms. The majority of our chart is loaded with companies that have created (or bought) platforms full of user-generated content that people use every day. Facebook, YouTube (owned by Google), Twitter, Snapchat, LinkedIn, and Yelp all make the cut on our chart, because they have gained massive scale.
In a nutshell, this is why the best technology companies have overtaken names like Exxon Mobil or Walmart to be the largest by market capitalization in the world.
Technology
Ranked: Semiconductor Companies by Industry Revenue Share
Nvidia is coming for Intel’s crown. Samsung is losing ground. AI is transforming the space. We break down revenue for semiconductor companies.
Semiconductor Companies by Industry Revenue Share
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Did you know that some computer chips are now retailing for the price of a new BMW?
As computers invade nearly every sphere of life, so too have the chips that power them, raising the revenues of the businesses dedicated to designing them.
But how did various chipmakers measure against each other last year?
We rank the biggest semiconductor companies by their percentage share of the industry’s revenues in 2023, using data from Omdia research.
Which Chip Company Made the Most Money in 2023?
Market leader and industry-defining veteran Intel still holds the crown for the most revenue in the sector, crossing $50 billion in 2023, or 10% of the broader industry’s topline.
All is not well at Intel, however, with the company’s stock price down over 20% year-to-date after it revealed billion-dollar losses in its foundry business.
Rank | Company | 2023 Revenue | % of Industry Revenue |
---|---|---|---|
1 | Intel | $51B | 9.4% |
2 | NVIDIA | $49B | 9.0% |
3 | Samsung Electronics | $44B | 8.1% |
4 | Qualcomm | $31B | 5.7% |
5 | Broadcom | $28B | 5.2% |
6 | SK Hynix | $24B | 4.4% |
7 | AMD | $22B | 4.1% |
8 | Apple | $19B | 3.4% |
9 | Infineon Tech | $17B | 3.2% |
10 | STMicroelectronics | $17B | 3.2% |
11 | Texas Instruments | $17B | 3.1% |
12 | Micron Technology | $16B | 2.9% |
13 | MediaTek | $14B | 2.6% |
14 | NXP | $13B | 2.4% |
15 | Analog Devices | $12B | 2.2% |
16 | Renesas Electronics Corporation | $11B | 1.9% |
17 | Sony Semiconductor Solutions Corporation | $10B | 1.9% |
18 | Microchip Technology | $8B | 1.5% |
19 | Onsemi | $8B | 1.4% |
20 | KIOXIA Corporation | $7B | 1.3% |
N/A | Others | $126B | 23.2% |
N/A | Total | $545B | 100% |
Note: Figures are rounded. Totals and percentages may not sum to 100.
Meanwhile, Nvidia is very close to overtaking Intel, after declaring $49 billion of topline revenue for 2023. This is more than double its 2022 revenue ($21 billion), increasing its share of industry revenues to 9%.
Nvidia’s meteoric rise has gotten a huge thumbs-up from investors. It became a trillion dollar stock last year, and broke the single-day gain record for market capitalization this year.
Other chipmakers haven’t been as successful. Out of the top 20 semiconductor companies by revenue, 12 did not match their 2022 revenues, including big names like Intel, Samsung, and AMD.
The Many Different Types of Chipmakers
All of these companies may belong to the same industry, but they don’t focus on the same niche.
According to Investopedia, there are four major types of chips, depending on their functionality: microprocessors, memory chips, standard chips, and complex systems on a chip.
Nvidia’s core business was once GPUs for computers (graphics processing units), but in recent years this has drastically shifted towards microprocessors for analytics and AI.
These specialized chips seem to be where the majority of growth is occurring within the sector. For example, companies that are largely in the memory segment—Samsung, SK Hynix, and Micron Technology—saw peak revenues in the mid-2010s.
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