NVIDIA truly reaches the summit as the "King of Chips"

Nvidia has defeated TSMC and Intel, winning the crown of the chip industry's revenue for the first time.

In the latest released chip industry revenue assessment report on Friday, Nvidia jumped from fourth place to first. Independent semiconductor industry analyst Dan Nystedt pointed out that with the release of the third-quarter financial data, Nvidia took the revenue crown from chip manufacturing giant TSMC.

AI continues to be hot, and Nvidia's explosive profitability is the best proof of its third-quarter performance that exceeded expectations. Its revenue doubled year-on-year to $18.12 billion, and net profit increased by 1259% to $9.243 billion. The chart released by Nystedt shows that in the third quarter of 2023, Nvidia surpassed its competitors in terms of revenue and profit.

The reason why Nvidia made such great progress in the third quarter is mainly due to the significant growth of its various business units, which have a multiplier effect on its revenue and income.

Although Nvidia has achieved remarkable returns in most of its businesses since last year, its data center business is a rising star. With the popularity of AI, Nvidia has demanded TSMC to manufacture more AI chips to power AI data centers.

However, due to its intellectual property, Nvidia's revenue and profit per chip are more substantial than TSMC's revenue and profit from chip production.

Although competitors such as TSMC, Samsung, and Intel have made some progress by 2023, Nvidia, with its multiple business units, can supply a range of technology-hungry AI markets and possess the ability to turn "stones into gold" in terms of making money.

However, in this AI chip race, this is just the beginning. Nvidia will face many challenges if it wants to hold onto the throne.