The U.S. semiconductor industry has hit a monumental milestone, amassing a combined market capitalization of $5.5 trillion as of Thursday. This achievement hypothetically positions the U.S. chipmaker industry as the world’s third-largest economy, surpassing Japan and trailing only behind the United States and China.
The industry’s spectacular growth stems from a surge in demand for artificial intelligence (AI) chips, propelling the overall market value to more than triple over the last year alone.
Leading this exponential growth, Nvidia Corp. (NASDAQ:NVDA) commands more than half of the industry’s overall market value, amounting to approximately $3 trillion.
Nvidia’s share price has soared by 210% over the last year and 143% year-to-date, marking the strongest performance within the broader tech-heavy Nasdaq 100 Index. Reflecting its growth in the data center business, Nvidia’s revenue has risen at a compounded annual growth rate of 54% over the last three years.
Besides Nvidia, 10 other U.S. semiconductor companies boast market caps exceeding $100 billion, cementing the industry’s dominance. Six chipmakers also appear in the S&P 100, topping any other industry. ...Full story available on Benzinga.com
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