Organizations adopt AI-led solutions to perform automated tasks, enhance productivity, enhance customer experience, and improve data analysis and decision-making. Due to its high demand and capabilities, global revenue is expected to reach $71 billion in 2024, an increase of 33% from 2023, according to Gartner’s latest forecast.
As AI chips continue to evolve in the development of advanced AI applications, Organizations increasingly leverage AI technologies in sectors such as healthcare, finance, automotive, and telecommunications.
“Today, generative AI (GenAI) is fueling demand for high-performance AI chips in data centers. In 2024, the value of AI accelerators used in servers, which offload data processing from microprocessors, will total $21 billion and increase to $33 billion by 2028,” said Alan Priestley, VP 2024.
Gartner forecasts that AI-powered PC shipments are expected to represent 22% of total PC shipments by 2024, and by the end of 2026, 100% of enterprise PC purchases will be AI PCs.
While AI semiconductor revenue will continue to experience double-digit growth: $53,662 million in 2023, $71,252 million in 2024, and $91,955 million in 2025. Through the forecast period, 2024 will experience the highest growth rate.
Advancements in AI chip design and manufacturing processes drive improvements in performance, energy efficiency, and cost-effectiveness.
In 2024, AI chips revenue by different segments from compute electronics is projected to total $33.4 billion, accounting for 47% of total AI semiconductors revenue. AI chips revenue from automotive electronics is expected to reach $7.1 billion and $1.8 billion from consumer electronics.
AI chips are crucial in advancing AI applications, and High-performance GPUs are used for new AI workloads.
As custom-designed chips improve operational efficiencies and reduce costs for AI-based services, a battle between semiconductor vendors and tech companies starts.
Major hyperscalers (AWS, Google, Meta, Microsoft) are investing in proprietary AI-optimized chips.
“As the market shifts from development to deployment, we expect to see this trend continue,” said Priestley.
Also Read: GenAI is now the most frequently deployed AI solution in Organizations: Gartner Survey
