The PC market has surrendered its end-use market leadership to the communications sector. SIA estimates the size of the various end use markets in the following chart: It is perhaps more interesting to segment the market by end-use. The types of semiconductor produced are dominated by its largest product segments – logic and memory, as shown on the following chart: Even with the COVID-19 global economic slowdown revenues increased by 7% during 2020.Īlthough there has been demand growth for many years, the chart also shows that the sector can go through sharp cyclical downturns. The Semiconductor Industry Association (SIA) estimates that the global market had approximate revenues of $US440b in 2020. Global demand for semiconductors has been in a long-term secular upswing as shown by the following chart:
Source: Author’s compilation using data from NVIDIA’s 10-K. The company currently has 2 reportable operating segments and the 2020 full year sales and margins are shown in the table below: The key step of manufacturing the semiconductor wafers is performed both by Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics ( OTCPK:SSNLF).Īt the time of writing this report, NVIDIA had a market capitalization of $US318.4b which makes it the 13th largest listed company on the S&P 500. It operates a so-called “fabless” model where it contracts 3 rd parties to perform the various manufacturing steps to get its products to market. It does not directly manufacture semiconductors. NVIDIA purely designs, markets and sells its products. The company went public with an initial public offering in 1999. NVIDIA was founded in 1993 by Jensen Huang (who is still the CEO), Chris Malachowsky and Curtis Priem with seed funding from Sequoia Capital. NVIDIA is the 2 nd largest semiconductor company globally by market capitalization behind Taiwan Semiconductor Manufacturing Company ( TSM) (TPE: 2330). Over the last year or two the company has been expanding its markets into artificial intelligence and autonomous vehicles. These semiconductor chips are used in several end-markets including high-end PC’s for gaming, data centers, mobile computing and auto infotainment systems. It is thought that NVIDIA is the technology leader in the design of graphics processing units (GPUs).
NVIDIA Corporation (NASDAQ: NASDAQ: NVDA) is a US based multinational technology company.
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