Nvidia overtakes Qualcomm to become the biggest chip designer by revenue, which should give Jensen plenty to smile about

UNITED STATES - SEPTEMBER 13: Jensen Huang, CEO of NVIDIA, arrives for the Inaugural AI Insight Forum in Russell Building on Capitol Hill, on Wednesday, September 13, 2023. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
(Image credit: Tom Williams via Getty Images)

It may have escaped your notice, but word on the street is that Nvidia is doing rather well of late. Fourth quarter earnings released earlier this year revealed gigantic revenue and net income figures thanks to surging AI demand, and now a recent report from Trendforce shows that the company has overtaken Qualcomm to become the biggest chip designer by revenue, too.

The figures show that Nvidia raked in $55.268 billion in revenue in 2023, in contrast to the second biggest chip designer, Qualcomm, which managed $30.913 billion over the same period. That puts Nvidia firmly at the top of the table, beating out Broadcom, AMD, Mediatek and others by a substantial margin and leaving the company at an estimated market share of 33%, up 15% over the previous year.

Notable by their absence in these figures are Intel and Samsung, as the list doesn't seem to include chip makers with their own fabrication facilities. Presumably Intel will appear once the switch to its "internal foundry model" is complete, splitting the fabrication and design departments in the process.

Still, these figures are sure to put a smile on the face of Nvidia CEO Jensen Huang, who has been busy announcing next-generation Blackwell AI GPUs that already seem to be flying off the racks,  and has even occasionally found the time to drop off the odd unit in person.

Nvidia is said to now have captured over 80% of the AI accelerator market thanks to strong sales of its H100 AI GPU, with revenue growth predicted to continue to rise into 2024 thanks to the new Blackwell chips. AMD's revenue meanwhile fell by 4% to $22.68 billion last year, with the slight stumble attributed to sluggish PC demand and inventory reduction.

While Nvidia appears to top the charts for now, it'll be interesting to see if Qualcomm can pull some of that lead back with sales of consumer chips. The company is said to be actively promoting the automotive market, and expects revenues in that sector to more than double by 2030.

A table showing top IC design house revenue, with Nvidia now at the top

(Image credit: Trendforce)

As for AMD, its AI GPU MI300 series is expected to be a major revenue driver in 2024. Recent financial statements released by the company have shown that server CPU sales, alongside heavily increased AI GPU revenue, have both led to large financial gains in the first quarter of this year, although its gaming division appears to be struggling.

Having a strong foothold in AI hardware seems to have done wonders for Nvidia's figures, and certainly bodes well for continued revenue in the coming months. The company seems to have been raking in the gains, and with these sorts of earnings and a sustained AI demand that seems to show no signs of slowing, it's difficult to imagine any of its competitors knocking it off the top spot for a long while to come.


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Andy Edser
Hardware Writer

Andy built his first gaming PC at the tender age of 12, when IDE cables were a thing and high resolution wasn't. After spending over 15 years in the production industry overseeing a variety of live and recorded projects, he started writing his own PC hardware blog for a year in the hope that people might send him things. Sometimes they did.

Now working as a hardware writer for PC Gamer, Andy can be found quietly muttering to himself and drawing diagrams with his hands in thin air. It's best to leave him to it.