Global AI chips revenue to grow 33% in 2024

“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 USD 21 billion, and increase to USD 33 billion by 2028,” says Alan Priestley, VP Analyst at Gartner in a press release.

Gartner forecasts AI PC shipments will reach 22% of the total PC shipments in 2024, and by the end of 2026, 100% of enterprise PC purchases will be an AI PC. AI PCs include a neural processing unit (NPU) enabling AI PCs to run longer, quieter and cooler and have AI tasks running continually in the background, creating new opportunities for leveraging AI in everyday activities.

While AI semiconductor revenue will continue to experience double-digit growth through the forecast period, 2024 will experience the highest growth rate during that period.

AI Chips Revenue from Compute Electronics to Record Highest Share in Electronic Equipment Segment
In 2024, AI chips revenue from computer electronics is projected to total $33.4 billion, which will account for 47% of total AI semiconductors revenue. AI chips revenue from automotive electronics is expected to reach USD 7.1 billion, and $1.8 billion from consumer electronics in 2024.

While much of the focus is on the use of high-performance graphics processing units (GPUs) for new AI workloads, the major hyperscalers (AWS, Google, Meta and Microsoft) are all investing in developing their own chips optimised for AI. While chip development is expensive, using custom-designed chips can improve operational efficiencies, reduce the costs of delivering AI-based services to users, and lower costs for users to access new AI-based applications. 

“As the market shifts from development to deployment we expect to see this trend continue,” says Priestley.