Direct Answer
60 SEC filers are classified under the Standard Industrial Classification code that describes the 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
Semiconductor companies design and make chips that process, store and move data in computers, phones, vehicles and machines. The industry is cyclical, with inventory swings, large capital needs and rapid technology change. The first numbers to compare across companies here are revenue by end market, gross margin and inventory days.
Key Industry Metrics
- Revenue by end market: Sales divided among data center, mobile, automotive and industrial uses. It shows which markets drive growth and how exposed results are to consumer cycles.
- Gross margin: Revenue left after wafers, assembly and test. It rises with strong pricing and utilization, and falls when inventory builds and factories run below capacity.
- Inventory days: The number of days of sales held as stock. Rising days can warn of weakening orders or a build ahead of demand, so compare it with customers' inventory.
- R&D and capital intensity: Spending on design and factories relative to revenue. The business needs constant reinvestment, so intensity shows the cost of staying competitive.
- Design wins: Selections of a chip by customers for future products. Wins convert to revenue over years, so they signal future share more than the current quarter.
Primary Macro Drivers
- End-market demand cycles: Demand in phones, computers, cars and factories moves in cycles, so end-market conditions drive revenue by end market and inventory days.
- AI and data center spending: Large cloud buyers' spending on AI and servers adds demand for processors and memory, shifting revenue mix and gross margin.
- Inventory and pricing: Chip prices move with supply and demand, and customer stock levels amplify swings, appearing in gross margin and inventory.
- Export policy: Rules on selling chips and tools to some countries change addressable demand and supply chains, shifting regional revenue and planning.
Major Risks
- Cyclical downturns: Demand falls and inventories build in downturns, cutting revenue and margin quickly; watch inventory days, gross margin and book-to-bill.
- Customer concentration: A few large buyers account for much of sales, so a design loss or order cut moves results; watch top-customer share and design wins.
- Geopolitical risk: Concentrated manufacturing and export limits can disrupt supply or sales; watch risk-factor language, regional revenue and sourcing commentary.
- Capital intensity: Plants and development cost very large sums that must be covered by sales, so weak demand strains cash; watch R&D and capital spending against revenue.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | Global |
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 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.
More in Information Technology
- Information Technology sector overview
- Semiconductors & Semiconductor Equipment
- Semiconductor Test Equipment
- Sensors
- Semiconductor Packaging Equipment
- Silicon Wafers
- Semiconductor Materials
- Software & Services
- Semiconductor Lithography
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Frequently Asked Questions
What are the main KPIs for the Semiconductors industry?
Key performance indicators for the Semiconductors industry include: Revenue by end market, Gross margin, Inventory days, R&D and capital intensity, Design wins. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Semiconductors industry?
The 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 Semiconductors industry?
The primary risks for Semiconductors companies include: Cyclical downturns, Customer concentration, Geopolitical risk, Capital intensity. Investors should assess each company's exposure to these factors and its track record of navigating them.