AI chips revenue is forecast to more than double by 2027
Semiconductors designed to execute artificial intelligence (AI) workloads will represent a US$ 53.4bn revenue opportunity for the semiconductor industry in 2023, an increase of 20.9% from 2022, according to the latest forecast from Gartner, Inc.
“The developments in generative AI and the increasing use of a wide range AI-based applications in data centers, edge infrastructure and endpoint devices require the deployment of high performance graphics processing units (GPUs) and optimized semiconductor devices. This is driving the production and deployment of AI chips,” stated Alan Priestley, VP Analyst, Gartner.
By 2027, AI chips revenue is expected to be more than double the size of the market in 2023, reaching US$ 119.4bn.
Deploying systems
Many more industries and IT organizations will deploy systems that include AI chips as the use of AI-based workloads in the enterprise matures. In the consumer electronics market, Gartner analysts estimate that by the end of 2023, the value of AI-enabled application processors used in devices will amount to US$1.2bn, up from US$ 558mn in 2022.
Generative AI is also driving demand for high-performance computing systems for development and deployment, with many vendors offering high performance GPU-based systems and networking equipment seeing significant near-term benefits.
In the long term, as the hyper-scalers look for efficient and cost-effective ways to deploy these applications, Gartner expects an increase in their use of custom-designed AI chips, a press statement concluded.
