Nvidia Became The Top Fabless Chip Designer Worldwide in 2023 Revenue Due to AI Boom

Demand for Nvidia’s H100 processor used for AI and HPC(high performance computing) applications is more in demand than ever. Nvidia more than doubled its revenue in the 2023 financial year and became the world’s largest fabless chip developer by revenue. Among the top 10 developers, Nvidia was one of only 4 that posted revenue increases last year.

Revenue of the top 10 fabless chip design firms rose to about $167.6 billion, increasing 12% from the previous year. The increase is largely due to Nvidia, which recorded a 105% growth and earned $55.268 billion while reportedly capturing over 80% of the AI accelerator market. Reports believe Nvidia’s dominance in the AI space will strengthen in 2024, the company is on track to release its H200 GPU and its Blackwell-based B110, B200 and GB200 SKUs.

According to reports, other industries such as Qualcomm and MediaTek – two major developers of application processors for smartphones – experienced declines due to a slump in the handset market. Revenue fell by 16% for Qualcomm whilst, similarly, MediaTek saw a 25% reduction in its revenue.

Going forward, the IC design industry is poised for more expansion in 2024, driven by the huge demand for AI processors. We are already seeing AI proliferate into person computing devices, with Windows 11 developers currently testing AI based predictive text. This shift is expected to further fuel revenue growth across the AI sector.