Technology research firm Gartner is forecasting that global AI chip revenue will hit $71 billion this year, an increase of 33% over 2023. The firm attributes this growth to the escalating demand for high-performance AI chips used in data centers, with Alan Priestley VP Analyst at Gartner noting that “the value of AI accelerators used in servers, which offload data processing from microprocessors, will total $21 billion, and increase to $33 billion by 2028.”
Gartner predicts that AI PCs will account for 22% of total PC shipments in 2024, and that 100% of enterprise PC purchases will be an AI PC by 2026. The firm defines an AI PC as a system that is powered by a processor with an integrated NPU (neural processing unit) that delivers extended battery life and quieter operation while continuously running AI workloads in the background.
In separate news, research firm IDC projects that worldwide smartphone shipments will recover in 2024 with 4% YoY growth to 1.2billion units thanks to a slow rebound in consumer demand. IDC expects the recovery to continue until 2028, though at a rather anemic compound annual growth rate of 2.3%.
“While the overall market will see a relatively strong recovery this year with 4% growth coming from almost all regions, it is important to note that the majority of the growth will be driven by Android, which is expected to grow significantly faster at 4.8% compared to 0.7% for iOS (Apple),” said Nabila Popal, research director with IDC’s Worldwide Tracker Team. “The rapid growth of Android is coming off a tough two years, while iOS’s softer growth is due to a strong 2023 and increasing competition in China that is denting its growth potential. However, if Apple makes a strong move around its AI strategy for iPhones, demonstrating clear use cases, it could accelerate the growth for Apple and revamp demand for iPhones, especially in China.”
Long time technology industry fan here in Taiwan.
