Strategic Intelligence: Semiconductors Sector Scorecard Q3 2025 Update

Nvidia possesses nearly 90% market share in AI chip design, and in 2024, it reported an annual revenue of $61 billion, an increase of 126% compared to the previous year. Despite successfully riding the generative AI tidal wave thus far, Nvidia faces threats from competitors. OpenAI, which has almost wholly depended on Nvidia graphics processing units (GPUs) until now, has diversified its supply, making multibillion-dollar deals with Broadcom and AMD. Both tech companies have enjoyed renewed confidence in their share prices.

Key Highlights

• ASML, based in the Netherlands, is an essential company within the semiconductor supply chain. It is the sole supplier of high-power, extreme ultraviolet (EUV) lithography equipment, without which the most advanced chips cannot be made. ASML’s CEO has said publicly that China is 10 to 15 years behind ASML. Meanwhile, China aims to prove him wrong and has implemented a national initiative with at least $43 billion in funding to develop domestic EUV lithography systems and challenge ASML’s market dominance. According to Chinese media reports, over 300 companies have already been mobilized to support EUV. Huawei, which in 2022 filed a patent for a new type of EUV light source, is considered one of the champions of EUV development in China. The company is planning to produce 5 nanometer chips without EUV in 2026.

Scope

• This sector scorecard provides a top-down, comprehensive outlook for the key players in the semiconductors sector over the next two years, based on the key themes set to transform their industry landscape.

Reasons to Buy

• Companies that invest in the right themes become success stories. Those that miss the important themes in their industry end up as failures.
• The analyst's thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition and secure that all-important competitive advantage.
• The analyst has developed a unique thematic methodology for ranking all major companies in all major sectors based on their relative strength in the big themes that are impacting their industries.
• First, we identify the top 10 themes transforming a sector across four categories (tech, macro, industry, and ESG). We also rank themes in order of priority by examining activity levels across 200 million alternative data signals, including patents, jobs, deals, filings, social media, and news.
• Second, we research each theme in detail, examining the value chain, key players, and trends. Additionally, we examine the impact of each theme across the 20 industries we cover. Our 200 million signals help identify the leading adopters of a theme in each sector.
• Finally, using our sector scorecards, we rank the companies most likely to succeed in a sector over the next five years.