AI semiconductor revenue to surge 33% to $71 bn: Gartner

Revenue from AI semiconductors is expected to increase 33 percent to $71 billion in 2024, according to forecast from Gartner.
BE SemiconductorsGenerative AI (GenAI) is fuelling demand for AI chips in data centres. The value of AI accelerators used in servers will reach $21 billion in 2024 and $33 billion by 2028.

AI PC shipments will reach 22 percent of the total PC shipments in 2024, and by the end of 2026, 100 percent of enterprise PC purchases will be an AI PC, Gartner forecasts.

In 2024, AI chips revenue from computer electronics is projected to total $33.4 billion, accounting for 47 percent 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.

Major hyperscalers such as AWS, Google, Meta and Microsoft are all investing in developing their own chips optimised 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,” Alan Priestley, VP Analyst at Gartner, said.

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