How America’s Top Chipmakers Stack Up

The semiconductor industry is one of the most strategically important and fiercely competitive sectors in the global economy. It underpins everything from smartphones to artificial intelligence (AI), from cloud computing to electric vehicles.

The latest figures for 2024 provide a clear view of how the top American chipmakers compare in terms of revenue, growth rates, profitability, and longer-term shareholder returns.

Currently, these companies hold a dominant presence across critical technology markets, from AI data centres and 5G infrastructure to consumer devices and automotive systems.

Their market positions are supported by strong brand recognition, established customer relationships, and significant R&D investment.

However, competitive pressures, evolving customer needs, and regulatory developments mean that leadership positions are not guaranteed, and investors should remain aware that market share can shift rapidly in the semiconductor industry.

These numbers tell more than just a corporate scoreboard - they offer insights into the shifting dynamics of technology leadership, the pace of innovation, and the economic cycles that shape the sector.

For investors, they highlight both the opportunities and the risks of investing in an industry known for rapid change.

Revenue in 2024: Scale and Market Position

Based on the latest available annual figures:

• NVIDIA: $130.5 billion

• Intel: $53.1 billion

• Broadcom: $51.5 billion

• Qualcomm: $39.0 billion

• AMD: $25.8 billion

NVIDIA stands out, generating more than double the revenue of Intel, its nearest rival by sales. This remarkable lead is fuelled by soaring demand for AI data centre chips, high-performance computing solutions, and graphics processing units (GPUs).

Intel, despite being one of the longest-standing names in semiconductors, finds itself in second place for revenue but struggling with slower demand growth. Broadcom holds a strong third position with a diversified portfolio spanning networking, wireless, and data centre solutions. Qualcomm’s revenues remain anchored in mobile device chipsets, while AMD continues to compete in CPUs, GPUs, and server chips, albeit at a smaller scale.

Historical context: A decade ago, Intel was the revenue leader by a wide margin. The change in leadership illustrates how market shifts - in this case, the rise of AI and high-performance computing - can completely alter competitive standings.

Year-over-Year (YoY) Revenue Growth: Momentum Matters

Growth rates reveal which companies are accelerating and which are facing headwinds:

• NVIDIA: +114.2%

• Broadcom: +44.0%

• AMD: +13.7%

• Qualcomm: +8.8%

• Intel: −2.1%

Triple-digit growth for NVIDIA reflects surging demand for AI accelerators, with major cloud providers, research institutions, and enterprises competing for limited supply. Broadcom’s substantial 44% growth underscores strong demand for networking and infrastructure products that support cloud and AI workloads.

AMD and Qualcomm’s single-digit to mid-teen growth rates are steady but less dramatic. Intel’s slight contraction of −2.1% highlights the ongoing challenges it faces in regaining competitiveness in advanced process nodes and foundry services.

Market cycle note: Semiconductor revenues often expand rapidly in periods of high demand but can contract sharply during downturns. Growth rates above 40% are rare and typically linked to major technology inflection points, such as the AI boom.

Net Profit Margins (2024): Profitability Leadership

Margins show how effectively companies convert sales into profit:

• NVIDIA: 55.9%

• Qualcomm: 25.9%

• Broadcom: 12.0%

• AMD: 6.4%

• Intel: −35.3%

NVIDIA’s industry-leading margins reflect strong pricing power and a focus on premium, high-demand products. Qualcomm’s licensing revenue, tied to its patent portfolio, supports profitability well above manufacturing-focused peers. Broadcom’s double-digit margin is respectable, given its diversified model. AMD’s margins are still narrow despite revenue growth, suggesting that scale and production efficiency remain challenges.

Intel’s negative margin reflects restructuring costs, competitive pressures, and underutilised manufacturing capacity - a reminder that scale alone does not guarantee profitability.

Five-Year Stock Returns: The Long-Term Perspective

Looking at share price performance over the last five years:

• NVIDIA: +1,505.0%

• Broadcom: +901.0%

• AMD: +150.4%

• Qualcomm: +89.8%

• Intel: −57.3%

NVIDIA’s long-term return is extraordinary, representing a more than fifteen-fold increase in shareholder value. Broadcom has also delivered exceptional multi-year growth, while AMD and Qualcomm have provided more modest, but still positive, returns.

Intel’s five-year decline illustrates how even established market leaders can underperform if they fail to adapt quickly to technological changes.

Investor lesson: Past performance, however strong, is not a reliable indicator of future results. Extreme outperformance can be followed by periods of volatility, especially in a cyclical industry.

Company-by-Company Highlights

NVIDIA

• Clear leader in AI and high-performance computing.

• Exceptional margins and revenue growth.

• Significant exposure to AI infrastructure demand, but also dependent on sustaining high levels of capital spending by customers.

Current Market Presence: NVIDIA is a leading provider of GPUs and AI computing platforms, with a dominant position in AI data centres, high-performance computing, and graphics processing for gaming. Its products power many of the world’s largest cloud and AI workloads. While demand remains strong, competition from alternative architectures and custom chips could influence its market position.

Broadcom

• Diversified portfolio across networking, broadband, and wireless.

• Consistent multi-year growth and strong returns.

• Less volatile than GPU-centric peers but still exposed to cyclical IT spending.
  

Current Market Presence: Broadcom operates across networking, broadband, storage, and wireless technologies, with its semiconductors embedded in infrastructure critical to global connectivity. Its diversified portfolio reduces reliance on any single product category, although exposure to enterprise IT spending cycles can influence performance.

Qualcomm

• Strength in mobile chipsets and licensing.

• Margins supported by intellectual property model.

• Growth challenged by mature smartphone markets; new opportunities in automotive and IoT.
  

Current Market Presence: Qualcomm is a leader in mobile chipsets and wireless communication technologies, with a strong licensing revenue stream from its intellectual property portfolio. Its current growth strategy includes expanding into automotive, IoT, and connected devices. Market maturity in smartphones, however, may limit near-term revenue expansion.

AMD

• Gains in CPUs and GPUs, particularly in data centres.

• Slim margins despite revenue growth.

• Competes directly with both Intel and NVIDIA, requiring ongoing high R&D spend.
  

Current Market Presence: AMD designs CPUs, GPUs, and data centre processors, competing directly with both Intel and NVIDIA. It has increased market share in gaming and high-performance computing, supported by strong product launches. Maintaining this momentum will depend on sustaining innovation and managing competitive pricing pressures.

Intel

• Large-scale transformation underway through foundry expansion and technology roadmap updates.

• Declining revenues and negative margins show challenges in execution.

• Potential long-term recovery story, but significant uncertainty remains.
  

Current Market Presence: Intel remains one of the largest semiconductor manufacturers globally, with a broad product range covering CPUs, data centre solutions, and integrated graphics. It is also investing heavily in foundry services and advanced manufacturing. However, it faces pressure from rivals in both performance and efficiency, making its turnaround efforts a key focus for the market.

Sector Themes Shaping the Next Five Years

AI and Machine Learning

AI remains the single most powerful demand driver for high-performance chips. The scale of investment from hyperscalers and enterprise clients has accelerated NVIDIA’s growth and supported related sectors like networking (Broadcom) and high-capacity memory.

Diversification and Supply Chain Strategy

Firms with diversified product lines, such as Broadcom, may be better insulated from downturns in any one segment. Geographic diversification of manufacturing is also becoming a strategic priority due to geopolitical tensions.

Geopolitics and Trade Policy

Export controls on advanced chips to certain countries could affect revenue streams. U.S.-China relations remain a critical factor for many semiconductor firms.

Industry Cyclicality

Periods of strong demand can be followed by inventory corrections, as seen in past cycles. Investors should anticipate that growth rates can normalise quickly.

Valuation Considerations

High valuations in leading names like NVIDIA may already reflect aggressive growth assumptions. Price sensitivity to earnings revisions can be significant.

Risks to Monitor

• Technology Disruption: New architectures or breakthroughs from competitors.

• Customer Concentration: Reliance on a small number of large buyers.

• Capex Dependency: Growth tied to continued large-scale investment by cloud and AI players.

• Macroeconomic Conditions: Recessions can sharply reduce IT budgets.

• Regulatory Change: Export controls and national security considerations impacting sales.

Summary Table

Company	2024 Revenue	YoY Growth	Profit Margin	5-Year Stock Return	Notable Points
NVIDIA	$130.5B	+114.2%	55.9%	+1,505%	AI-driven growth, industry-leading margins
Broadcom	$51.5B	+44.0%	12.0%	+901%	Diversified, strong long-term compounder
Qualcomm	$39.0B	+8.8%	25.9%	+89.8%	Strong licensing income, mobile-focused
AMD	$25.8B	+13.7%	6.4%	+150.4%	Gains in CPUs/GPUs, lower margins
Intel	$53.1B	−2.1%	−35.3%	−57.3%	Turnaround in progress, high uncertainty

Disclaimer:This article is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Past performance is not a reliable indicator of future results. The value of investments can go down as well as up, and investors may not get back the amount originally invested. The semiconductor sector is volatile and cyclical, and investors should carefully assess their risk tolerance and seek professional advice where appropriate. Alpesh Patel OBE

www.campaignforamillion.com