Direct Answer
60 SEC filers are classified under the Standard Industrial Classification code that describes the connectivity semiconductors industry, and their latest annual reports show $542.8 billion of combined revenue and a median operating margin of -2.3%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Connectivity semiconductor makers produce Wi-Fi, Bluetooth, cellular and ethernet chips that connect devices to networks. Revenue follows device shipments and standards transitions such as new Wi-Fi generations. The first numbers to compare across companies here are revenue by standard, design wins with large device makers and gross margin.
Key Industry Metrics
- Revenue by standard: Sales split by Wi-Fi, Bluetooth, cellular and ethernet technologies. It shows exposure to standards transitions, since new generations lift content and sales when adopted.
- Design wins with large device makers: New designs selected by large phone and device makers. Wins feed revenue in later product cycles, so they are a leading sign of future share but depend on the customer's launches.
- Gross margin: Revenue left after wafers, assembly and test. Pricing pressure and a mix of mature products reduce it, while leading standards and integrated solutions support it.
- Customer concentration: The share of revenue from a few large device makers. Because a few brands ship most devices, losing one design can cut revenue sharply.
- Inventory: Chips on hand and at distributors. Consumer demand shifts quickly, so high stock can lead to price cuts and write-downs, while lean stock supports pricing.
Primary Macro Drivers
- Smartphone and device cycles: Phones, laptops and gadgets embed wireless chips, so device shipment cycles drive revenue and design wins.
- New standards adoption: Each new Wi-Fi or cellular generation adds content and price per chip as customers upgrade devices and access points, shown in revenue by standard.
- Automotive and IoT connectivity: Cars and connected devices add wireless chips beyond phones, widening end markets and design-win opportunities.
- Data center networking: Faster switching and links between servers require specialized ethernet and connectivity chips, adding a growing segment.
Major Risks
- Customer concentration in a few device makers: A few large device makers account for most revenue, so a lost socket or a design change moves results; watch top-customer share and design wins.
- Cyclical consumer demand: Consumer device demand swings with the economy and upgrade timing, so shipments can fall quickly; watch revenue by end market and inventory.
- Price competition: Rivals and in-house designs pressure prices on mainstream parts, narrowing gross margin; watch gross margin and design-win trends.
- Standards change: A new standard can reset share and require new designs and spending; watch revenue by standard and research intensity.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Low |
| Industry Maturity | Mature |
| Geographic Importance | Global |
Connectivity Semiconductors Filers in the SEC Record
60 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 3674. Their latest fiscal years end between 2025 and 2026, and together they reported $542.8 billion of revenue. Median revenue growth over the prior year was 20.3%. Median operating margin was -2.3% and median net margin -1.7%. Median total liabilities were 34% of total assets, and 27 of 60 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Nvidia Corp | $215.9 billion | 65.5% | 60.4% | 55.6% | FY 2026 |
| Broadcom Inc. | $63.9 billion | 23.9% | 39.9% | 36.2% | FY 2025 |
| Intel Corp | $52.9 billion | -0.5% | -4.2% | -0.5% | FY 2025 |
| Micron Technology Inc | $37.4 billion | 48.9% | 26.1% | 22.8% | FY 2025 |
| Advanced Micro Devices Inc | $34.6 billion | 34.3% | 10.7% | 12.5% | FY 2025 |
| Applied Materials Inc | $28.4 billion | 4.4% | 29.2% | 24.7% | FY 2025 |
| Texas Instruments Inc | $17.7 billion | 13.0% | 34.1% | 28.3% | FY 2025 |
| Nxp Semiconductors N.V. | $12.3 billion | -2.7% | 24.8% | 16.5% | FY 2025 |
The 8 largest of 60 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Connectivity Semiconductors guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Connectivity Semiconductors industry?
Key performance indicators for the Connectivity Semiconductors industry include: Revenue by standard, Design wins with large device makers, Gross margin, Customer concentration, Inventory. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Connectivity Semiconductors industry?
The Connectivity Semiconductors industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Connectivity Semiconductors industry?
The primary risks for Connectivity Semiconductors companies include: Customer concentration in a few device makers, Cyclical consumer demand, Price competition, Standards change. Investors should assess each company's exposure to these factors and its track record of navigating them.