Dan’s Biz Bookshelf: ‘Citizen Marketers: When People Are the Message’
It’s Only Common Sense: What To Do When They Won’t Answer the Phone
The Right Approach: ‘Twas the Night Before Christmas (Harley-style)
Worldwide AI Chips Revenue to Grow 33% in 2024
May 29, 2024 | Gartner, Inc.Estimated reading time: 1 minute
Revenue from AI semiconductors globally is expected to total $71 billion in 2024, an increase of 33% from 2023, according to the latest forecast from Gartner, Inc.
“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 Analyst at Gartner.
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 (see Table 1).
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 $7.1 billion, and $1.8 billion from consumer electronics in 2024.
Fierce Battle Between Semiconductor Vendors and Tech Companies
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 optimized 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,” said Priestley.
Share on:
Suggested Items
The Path Ahead: SMT007 Magazine—January 2025
01/02/2025 | I-Connect007 Editorial TeamJanuary is a traditional time to mark changes in our lives. A new year can signal new beginnings. But change is constant. So, as we flip over the calendar into 2025, we look at what’s ahead for the EMS supplier industry. What are your concerns and challenges? What trends are emerging? What can we expect from a new administration?
Laser Photonics and Fonon Technologies Deliver Training at Pearl Harbor Naval Shipyard & IMF for Effective Use of Laser Technology
01/02/2025 | BUSINESS WIRELaser Photonics Corporation (LPC), a leading global developer of industrial laser systems for cleaning and other material processing applications, in partnership with its sister company Fonon Technologies, announced the completion of training on the safe and optimal use of a DefenseTech laser system earlier purchased by the Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility (PHNSY & IMF).
IPC Announces UK Regional Qualification for Hand Soldering Competition
01/02/2025 | IPCIPC invites skilled soldering experts to participate in the UK Regional Qualification for the IPC Hand Soldering Competition (HSC) on February 4-6, 2025, at the Farnborough International Exhibition Centre.
TRI to Exhibit Advanced Test and Inspection at IPC APEX Expo 2025
01/01/2025 | TRITest Research, Inc. (TRI) will join the IPC APEX EXPO 2025 held at Anaheim Convention Center on March 18 – 20, 2025. Visit TRI at booth #2905 to experience TRI's latest test and inspection solutions for the electronics manufacturing Industry.
Happy New Year From I-Connect007
01/01/2025 | Nolan Johnson, I-Connect007As I-Connect007 observes the New Year’s Day holiday, we also wish you and yours a prosperous new year. We will be back covering the news of the industry tomorrow, January 2, 2025, according to the Gregorian calendar.