According to the latest forecast from Gartner, a research and consulting firm, revenue from (artificial intelligence) AI semiconductors globally is expected to total $71 billion in 2024, posting a 33% increase from 2023,
Gartner said the surge is driven by the rising demand for high-performance AI chips, particularly in data centers, fueled by advancements in generative AI (GenAI).
“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 Analyst at Gartner.
AI PC shipments are predicted to account for 22% of total PC shipments in 2024. By the end of 2026, all enterprise PC purchases are seen to be AI PCs. These AI PCs, equipped with neural processing units (NPUs), are designed to operate longer, quieter, and cooler while running AI tasks continuously in the background, opening new possibilities for AI integration in daily activities.
AI semiconductor revenue
Despite continuous double-digit growth in AI semiconductor revenue throughout the forecast period, 2024 is projected to witness the highest growth rate. The revenue from AI chips in compute electronics is anticipated to be the largest, totaling $33.4 billion and accounting for 47% of the total AI semiconductors revenue. In the automotive electronics segment, AI chips revenue is expected to reach $7.1 billion, and in consumer electronics, it is projected to be $1.8 billion in 2024.
The competition among semiconductor vendors and tech companies is intensifying. While high-performance graphics processing units (GPUs) are essential for new AI workloads, major hyperscalers like AWS, Google, Meta, and Microsoft are developing their own AI-optimized chips. Despite the high costs of chip development, custom-designed chips can enhance operational efficiencies, reduce the costs of delivering AI services, and lower user costs for accessing new AI applications.
“As the market shifts from development to deployment, we expect this trend to continue,” Priestley noted.