Direct Answer
60 SEC filers are classified under the Standard Industrial Classification code that describes the data center 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
Data center semiconductor makers produce the processors, accelerators, memory and networking chips that power servers and AI clusters. Demand is led by hyperscaler spending, and supply constraints and product cycles drive share. The first numbers to compare across companies here are data center revenue and growth, gross margin and backlog and supply.
Key Industry Metrics
- Data center revenue and growth: Sales of chips for servers and AI clusters and their growth. It shows how much results depend on hyperscaler spending, and growth rates reflect both volume and mix toward accelerators.
- Gross margin: Revenue left after wafers, memory and packaging costs. Scarce accelerators earn high prices, while competition and supply costs can reduce margin when markets mature.
- Backlog and supply: Orders on hand and the ability to deliver them. Supply of advanced packaging and memory often limits shipments, so backlog shows demand but supply sets how fast it converts.
- Customer concentration: The share of sales from a few large cloud buyers. Their capital plans swing orders, so a high share leaves results sensitive to a single customer's spending cycle.
- Product roadmap: Planned product generations and their timing. Customers buy based on performance and software support, so a delayed or strong release can shift share for several years.
Primary Macro Drivers
- AI training and inference demand: Training and running models requires processors and memory in large numbers, so model demand drives data center revenue, backlog and supply allocation.
- Hyperscaler capital spending: Cloud giants decide how many servers to buy, so their budgets set the overall volume and appear in data center growth.
- Memory and packaging supply: Chips ship only when enough memory and advanced packaging are available, so these inputs limit revenue and affect gross margin and backlog.
- Power availability: Data centers can only deploy chips if they have electrical capacity, so grid and cooling limits can delay installations and revenue timing.
Major Risks
- Customer concentration: A few cloud and AI buyers account for most revenue, so a change in plans shows up directly; watch top-customer share and backlog.
- Capex digestion: Buyers can pause orders to absorb installed capacity, causing a sharp revenue slowdown; watch backlog, customer capital spending guidance and inventory.
- Export controls: Rules limiting sales of advanced chips to certain countries can remove demand or force product redesign; watch regional revenue and license disclosures.
- Competition from custom silicon: Large buyers designing their own chips can shift volume away from merchant suppliers; watch customer concentration, pricing and disclosed share trends.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Low |
| Industry Maturity | Growth |
| Geographic Importance | Global |
Data Center 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 Data Center 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 Data Center Semiconductors industry?
Key performance indicators for the Data Center Semiconductors industry include: Data center revenue and growth, Gross margin, Backlog and supply, Customer concentration, Product roadmap. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Data Center Semiconductors industry?
The Data Center 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 Data Center Semiconductors industry?
The primary risks for Data Center Semiconductors companies include: Customer concentration, Capex digestion, Export controls, Competition from custom silicon. Investors should assess each company's exposure to these factors and its track record of navigating them.