Gartner Predicts 33% Growth in AI Chip Revenue for 2024

– AI Accelerators in Servers Expected to Hit $21 Billion in 2024
– Compute Electronics to Make Up 47% of AI Chip Revenue
– By 2026, All Enterprise PC Purchases Will Be AI PCs

STAMFORD, Conn., May 30, 2024 — Global revenue from AI semiconductors is projected to reach $71 billion in 2024, marking a 33% increase from 2023, according to Gartner, Inc.

“Generative AI is driving the demand for high-performance AI chips in data centers. AI accelerators in servers will be valued at $21 billion in 2024, rising to $33 billion by 2028,” said Alan Priestley, VP Analyst at Gartner.

Gartner predicts that AI PCs will constitute 22% of all PC shipments in 2024, with 100% of enterprise PC purchases being AI-enabled by the end of 2026. These AI PCs will feature neural processing units (NPUs) for enhanced performance and efficiency, enabling continuous background AI tasks.

AI semiconductor revenue will maintain double-digit growth through the forecast period, with 2024 seeing the highest growth rate.

AI Semiconductor Revenue Forecast (Millions of U.S. Dollars):
– 2023: $53,662
– 2024: $71,252
– 2025: $91,955

AI chips in compute electronics are expected to generate $33.4 billion in 2024, accounting for 47% of total AI semiconductor revenue. AI chips for automotive electronics and consumer electronics are projected to reach $7.1 billion and $1.8 billion, respectively.

Major tech companies like AWS, Google, Meta, and Microsoft are investing in custom AI-optimized chips to enhance operational efficiencies and reduce costs. This trend is expected to continue as the market moves from development to deployment, according to Priestley.