AI Chip Revenue Soaring in 2024, According to Gartner

The chip market in 2024 is projected to reach a staggering US$624 billion, according to the latest estimates from market researchers. Within this booming industry, artificial intelligence (AI) is set to claim a significant share, with expectations of reaching 11.4 percent and showing rapid growth.

Gartner, a leading research and advisory company, anticipates that the value of AI accelerators in servers will hit US$21 billion by 2024. Additionally, revenue from AI chips in computing electronics is forecasted to reach $33.4 billion, constituting 47 percent of the total AI semiconductors revenue. The automotive electronics sector is also poised to benefit, with AI chips revenue expected to reach US$7.1 billion, while consumer electronics are projected to contribute US$1.8 billion to the market in 2024.

"Today, generative AI is driving the demand for high-performance AI chips in data centers," noted Alan Priestley, an analyst at Gartner. Looking ahead to 2024, Priestley predicts that the value of AI accelerators utilized in servers, which assist in offloading data processing from microprocessors, will amount to US$21 billion. This figure is expected to climb to US$33 billion by 2028, showcasing the sustained growth potential in this segment.

Furthermore, Gartner's forecasts indicate that AI-powered personal computers (PCs) will represent 22 percent of total PC shipments by 2024. By the conclusion of 2026, it is projected that all enterprise PC purchases will be AI PCs. These advanced systems are equipped with a neural processing unit (NPU) that enables them to operate more efficiently, quietly, and with lower temperatures. AI tasks can run continuously in the background, opening up new possibilities for integrating AI into various everyday activities.

As the chip market continues to evolve, companies like Nvidia are experiencing remarkable growth, quadrupling their sales year-on-year. However, challenges have also emerged, leading analysts to revise their forecasts. Following a disappointing first quarter in 2024, some have described the market performance as a "train wreck," prompting adjustments to growth projections.