According to Gartner, AI chip revenue will continue growing to $119.4 billion in 2027
Gartner this week revealed findings that suggest potential revenue from semiconductors designed to run artificial intelligence (AI) workloads will hit $53.4 billion this year — an increase of 20.9% from 2022 — and continue growing to $119.4 billion in 2027.
Throughout the forecasted period, the firm expects AI semiconductor revenue to experience double-digit growth, as shown in the below table.
Alan Priestley, VP analyst at Gartner, said drivers behind this growth include recent and explosive developments in generative AI, as well and as “the increasing use of a wide range AI-based applications in data centers, edge infrastructure and endpoint devices,” which require high performance GPUs and optimized semiconductors.
This need for optimized chips, said the firm, will increase the deployments of custom-designed AI chips. “For many organizations, large scale deployments of custom AI chips will replace the current predominant chip architecture – discrete GPUs – for a wide range of AI-based workloads, especially those based on generative AI techniques,” added Priestley.
Further, Gartner commented that vendors offering high-performance GPU-based systems and networking equipment are seeing “significant near-term benefits,” and in the long term, will seek out “efficient and cost-effective ways to deploy these applications,” which will result in the higher use of custom-designed AI chips.