Global revenue from AI semiconductors is projected to reach $71 billion in 2024, marking a 33% increase from the previous year, according to a recent Gartner report.
Gartner also anticipates that AI-equipped PCs will constitute 22% of total PC shipments in 2024. By the end of 2026, all enterprise PC purchases are expected to feature AI capabilities. These AI PCs, identified by their neural processing units (NPUs), are designed to operate longer, quieter, and cooler while running AI tasks continuously in the background.
The report breaks down the projected revenue from AI chips embedded in various devices. The computer electronics segment is forecasted to generate $33.4 billion, accounting for 47% of the total AI semiconductor revenue in 2024. Meanwhile, AI chip revenue from automotive electronics is expected to hit $7.1 billion, with consumer electronics contributing $1.8 billion.
2024 is set to experience the highest growth rate for AI chip revenue within the period covered by the report. Alan Priestley, VP Analyst at Gartner, noted that the current surge in generative AI (GenAI) is driving the demand for high-performance AI chips in data centers. AI accelerators in servers, which handle data processing tasks, are expected to be valued at $21 billion in 2024 and increase to $33 billion by 2028.
The report also highlights the competitive landscape among semiconductor vendors and technology companies. While high-performance GPUs, particularly from Nvidia, dominate the AI workload market, major tech giants like AWS, Google, Meta, and Microsoft are developing their own AI-optimized chips. These custom-designed chips, despite their high costs, are anticipated to enhance operational efficiencies and reduce expenses for both service providers and users accessing AI-based applications.
In the broader semiconductor market, Gartner previously predicted a significant recovery in 2024, with overall semiconductor revenues expected to increase by 16.8%, reaching $624 billion. The memory market, in particular, is forecasted to see substantial growth, with a projected increase of 66.3%.
