Chip Manufacturers Face Economic Downturn, But NVIDIA Ramps Up on AI Wave

International chip manufacturers are facing economic difficulties due to declining demand. However, despite the challenging circumstances, NVIDIA is achieving excellent results thanks to the surge in interest in Artificial Intelligence (AI).

AMD and MediaTek are still struggling with inventory correction as demand has dropped to record low levels. Both companies have encountered a reduction in revenues and market share, and at present, the prospects do not seem to favor them. It appears that these two companies have failed to attract AI customers as NVIDIA has with their current chip portfolio.

Conversely, NVIDIA has shown significant revenue growth due to the rapid rise in demand driven by the implementation of generative AI worldwide. The company's profits are expected to increase even more in the second quarter.

The company's gaming and data processing center revenues significantly increased in the first quarter - by 20% and 10% respectively. NVIDIA's earnings rose by 13.5%, totaling $6.73 billion. In addition to revenues, the company's market share has also increased, and it is expected to soon take the lead, surpassing Qualcomm.

As reported by TrendForce, Qualcomm still holds the market lead with its 23.5% share. However, despite a 6.1% increase in revenues in the smartphone department, the company faced a revenue reduction in the automotive department, which eventually led to an overall increase in company revenues of only 0.6%.

Despite the challenging economic circumstances, the TrendForce report offers hope for recovery in the next quarter.