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.
Suggested Items
Celestica Announces Q2 2024 Financial Results
07/26/2024 | CelesticaCelestica Inc., a leader in design, manufacturing, hardware platform and supply chain solutions for the world's most innovative companies, announced financial results for the quarter ended June 30, 2024 (Q2 2024)†.
Amphenol Reports Record Q2 2024 Results and Announces Dividend Increase
07/26/2024 | Amphenol CorporationThe Company continues to deploy its financial strength in a variety of ways to increase shareholder value. During the quarter, the Company purchased 3.1 million shares of its common stock for $190 million and paid dividends of $132 million, resulting in total capital returned to shareholders of more than $320 million.
Looking For That Perfect Job? Check Out jobCONNECT007
07/25/2024 | I-Connect007 Editorial TeamThere are a lot of open positions in this industry today. But where do you begin to look? We have the answer: jobCONNECT007, your guide to career opportunities in the electronic industry. In jobCONNECT007, you’ll find job openings that span the entire circuit board supply chain. Whether you’re involved in design, fabrication, assembly, test, or material development or distribution, this handy resource can help you get on your way to a new gig.
Boeing Provides Digital Flight Operations Solution for Ryanair
07/25/2024 | BoeingBoeing and Ryanair, Europe's largest airline group, are elevating efficiency across Ryanair's fleet of primarily 737s with the addition of Boeing's Jeppesen FliteDeck Pro 5.0 electronic flight bag (EFB) solution.
Cicor Group Grows Significantly and Shows Robust Operational Performance in a Challenging Environment
07/24/2024 | CicorCicor Group has continued to grow significantly in the first half of 2024, advancing into the top tier of European electronics manufacturers. Net sales reached CHF 231.3 million, an increase of 16.1% compared to CHF 199.2 million for the first half of 2023.