Technology
The Future of the Internet Industry
The Future of the Internet Industry
In today’s connected world, Internet connection has become a need instead of a luxury, and a push to ensure universal access is picking up steam. In fact, Facebook and Google have both begun projects to ensure communities without Internet receive free access to the web.
Even lawmakers have taken note of the universal Internet access need. In Wisconsin, the state has awarded $500,000 in grants to expand rural Internet access to incentivize private corporations to offer their services. A similar push is taking place in Canada. Residents of Alberta’s Strathcona County are heavily underserved, only 35% of the county’s residents have access to Internet. The County’s council unanimously voted in favour of funding investment into telecommunication infrastructure. The story is the same overseas; India, which will be part of the largest internet traffic market, is setting aside millions to connect remote villages to the Internet.
There is a major investment opportunity in companies that will be developing the associated IT infrastructure. With many markets across the world aiming to connect more users, billions will be spent in infrastructure. Canadian telecommunications giant, Telus (TSE: T), recently announced it will invest $2.8 billion in infrastructure in order to gain market share in underserved markets. This is on trend with growing North American demand, as evidenced by the infographic. The infographic shows that the North American market generates the most business traffic, watches the most internet TV, and is second in internet gaming.
Underserved Africa is seeing similar investment in infrastructure. French telecoms operator Orange (NYSE: ORAN), international connectivity services provider, BICS (Euronext: BLG), and Internet Solutions (owned by Nippon, NYSE: NTT) have all announced new IT infrastructure investment in Africa. This is a savvy move for the growing market. As the infographic indicates, Africa’s internet traffic has quadrupled in the last five years alone, and this trend is likely to continue.
Original infographic from: Cisco Systems
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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