Dan’s Biz Bookshelf: ‘Do/Start'
Facing the Future: The Role of 5G and Beyond in Shaping PCB Demand
It’s Only Common Sense: Stop Pitching, Start Listening
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 ICAPE Group Announces a 13% Growth in Revenue to €51.1M for Q1 2025
05/15/2025 | ICAPE GroupThe ICAPE Group, a global technology distributor of printed circuit boards (PCB) and custom-made electromechanical parts, announced its sales for the first quarter of 2025.
Interlink Electronics Reports Q1 2025 Result
05/15/2025 | BUSINESS WIREInterlink Electronics, Inc., a global leader in sensor technology and printed electronic solutions, reported results for the first quarter ended March 31, 2025.
In Pursuit of Perfection: Defect Reduction—May 2025 PCB007 Magazine Now Available
05/15/2025 | I-Connect007 Editorial TeamFor bare PCB board fabrication, defect reduction is a critical aspect of a company's bottom line profitability. In the May 2025 issue of PCB007 Magazine, we examine the imaging, etching, and plating processes, as well as product traceability on the shop floor, providing information and insight into how you can reduce your defects and increase yields.
indie Semiconductor Reports Q1 2025 Results
05/13/2025 | BUSINESS WIREindie Semiconductor, Inc., an automotive solutions innovator, today announced first quarter results for the period ended March 31, 2025. Q1 revenue was up 3.3 percent year-over-year to $54.1 million with Non-GAAP gross margin of 49.5 percent. On a GAAP basis, first quarter 2025 operating loss was $38.9 million compared to $49.6 million a year ago.
Infineon’s Revenue Growth in Q2 Confirms Expected Economic Recovery
05/13/2025 | InfineonInfineon Technologies AG is reporting results for the second quarter of the 2025 fiscal year (period ended 31 March 2025).