AI Chipsets Market

The report "Al Chip Market By Offerings (GPU, CPU, FPGA, NPU, TPU, Trainium, Inferentia, T-head, Athena ASIC, MTIA, LPU, Memory {DRAM (HBM, DDR)}, Network {NIC/Network Adapters, Interconnects}), Function (Training, Inference), & Region - Global Forecast to 2032" The AI chip market is projected to grow from USD 203.24 billion in 2025 to USD 564.87 billion by 2032; it is expected to grow at a compound annual growth rate (CAGR) of 15.7% from 2025 to 2032. AI chips have emerged as the epitome of technological growth. The growing emphasis on parallel computing in AI data centers is likely to drive innovation across various industries, including BFSI, healthcare, retail, and e-commerce. Moreover, the growth in AI server shipments is expected to fuel the demand for AI chips. Furthermore, the market's growth is attributed to the increasing adoption of industrial robotics and automation that rely on AI capabilities.

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By technology, the natural language processing segment is projected to grow at a significant CAGR in the AI chip market during the forecast period.

The natural language processing technology is expected to experience significant growth during the forecast period. Applications, such as chatbots, virtual assistants, language translation services, sentiment analysis, and text analytics, rely on NLP for processing and understanding human languages. Since the application is extensive, a significant demand has been created for powerful AI chips that can handle the extensive computational requirements of NLP tasks, driving the growth of the AI chip market. Since the invention of large-scale language models, such as GPT-4 and BERT, the complexity and size of NLP models have continued to increase. For instance, in May 2024, OpenAI released GPT-40, which is capable of reasoning on text, video, and audio in real time; deployment in applications from content generation to virtual assistants underlines the fast-rising demand for AI chips supporting NLP.

By offering, the memory segment is expected to register a significant growth rate during the forecast period.

The memory segment is expected to record a high CAGR during the forecast period. There is a rapid growth in AI applications, resulting in increased data generation and processing requirements. This increase in data volumes leads to surging demand for advanced memory solutions such as high-bandwidth memory (HBM) and DDR5, which are capable of storing and accessing large volumes of data efficiently. AI applications involving machine learning and deep learning require high-speed processing capabilities and rapid data access. Dynamic random-access memory (DRAM) meets the need for faster computational performance as the complexity of AI algorithms continues to increase. Advancements in DRAM, such as the transition to DDR5, offer a high data transfer rate and enhanced energy efficiency.

North America is poised for high growth in the AI chip market during the forecast period.

The US, Canada, and Mexico are the major contributors to the North American AI chip market. North America is a significant contributor to the AI chip market, accounting for a substantial share of the market. The AI chip manufacturers in North America collaborate with industry partners, research institutions, and government agencies to expand market reach and drive technological innovation. These players are forming strategic alliances to accelerate the adoption of AI chip technology in emerging sectors, thereby supporting market growth in North America. Leading companies in North America, such as Qualcomm Technologies, Inc. (US), Advanced Micro Devices, Inc. (AMD) (US), Intel Corporation (US), and Google (US), provide AI chips for data centers and various industries. These companies invest significantly in R&D to enhance the reliability, performance, and efficiency of AI Chip technology. This includes advancements in manufacturing processes and design techniques to meet the evolving demands of different industries in the region. The extensive focus of regional players on product launches and enhancements is expected to drive growth in the AI chip market in North America during the forecast period.

Key Players

Leading players in the AI chip market include are NVIDIA Corporation (US), Advanced Micro Devices, Inc. (AMD) (US), Intel Corporation (US), Micron Technology, Inc. (US), Google (US), Qualcomm Technologies, Inc. (US), Apple Inc. (US), Huawei Technologies Co., Ltd. (China), SK Hynix Inc. (South Korea), Samsung (South Korea), Imagination Technologies (UK), Graphcore (UK), and Cerebras (US), among others.

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