Gartner: Global AI chip revenue will grow 33% in 2024

Gartner: Global AI chip revenue will grow 33% in 2024

According to Gartner's latest forecast, global revenue from artificial intelligence semiconductors is expected to reach US$71 billion in 2024, a 33% increase from 2023.

AI PC shipments will reach 22% of total PC shipments in 2024, and 100% of PCs purchased by enterprises will be AI PCs by the end of 2026. AI PCs include a neural processing unit (NPU), which enables AI PCs to run longer, quieter, and cooler, and continuously run AI tasks in the background, creating new opportunities to leverage AI in everyday activities.

While AI semiconductor revenue will continue to experience double-digit growth during the forecast period, 2024 will experience the highest growth rate during this period.

PC AI chip revenue share hits record high

In 2024, AI chip revenue from computing electronics is expected to reach $33.4 billion, accounting for 47% of total AI semiconductor revenue. In 2024, AI chip revenue from automotive electronics is expected to reach $7.1 billion, and AI chip revenue from consumer electronics is expected to reach $1.8 billion.

Fierce competition among semiconductor manufacturers and technology companies

While much of the focus has been on using high-performance graphics processing units (GPUs) for new AI workloads, the major hyperscalers (AWS, Google, Meta, and Microsoft) are investing in developing chips optimized for AI. While chip development is expensive, using custom-designed chips can improve operational efficiency, reduce the cost of delivering AI-based services to users, and reduce the cost of user access to new AI-based applications.

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