AI semiconductor revenue is set to increase globally, reaching $71 billion in 2024, with a 33% growth from 2023, as per Gartner’s latest forecast. The rise in demand for high-performance AI chips in data centers, driven by generative AI (GenAI), is a major factor contributing to this growth. By 2028, the value of AI accelerators used in servers is expected to reach $33 billion, with AI PC shipments accounting for 22% of total PC shipments in 2024.
The forecast also predicts that by the end of 2026, 100% of enterprise PC purchases will be an AI PC. These AI PCs are equipped with a neural processing unit (NPU) that enables them to run AI tasks continuously in the background, creating new opportunities for leveraging AI in daily activities. While AI semiconductor revenue is expected to experience double-digit growth throughout the forecast period, 2024 is projected to see the highest growth rate.
In terms of revenue distribution, AI chips from computer electronics are expected to account for 47% of total AI semiconductor revenue in 2024, totaling $33.4 billion. Revenue from automotive electronics is predicted to reach $7.1 billion, while consumer electronics are expected to generate $1.8 billion in AI chip revenue in 2024. Major hyperscalers such as AWS, Google, Meta, and Microsoft are focusing on developing their own AI-optimized chips, shifting from using high-performance GPUs for new AI workloads.
Despite the high cost of chip development, custom-designed chips can improve operational efficiencies, reduce costs for delivering AI-based services to users, and lower costs for users to access new AI-based applications. This trend is expected to continue as the market shifts from development to deployment, according to Gartner’s VP Analyst, Alan Priestley. With the continuous advancement of AI technology and the increasing demand for AI chips, the AI semiconductor industry is poised for significant growth in the coming years, driven by developments in data centers, AI PCs, and custom-designed chips optimized for AI.
