Processor revenue by 2028 to reach US$242 billion, AI processors take major share

Date: 12/04/2024
The demand for AI acceleration hardware is skyrocketing, especially in data center applications. By 2028, processor revenue is expected to reach US$242 billion, growing steadily at an 8% compound annual growth rate (CAGR) from 2022, as per the latest study by Yole. The processor market is witnessing significant growth, with major suppliers experiencing sequential increases in Q4-2023. However, emerging architectures are posing challenges to established players across various applications, leading to a state of flux in the processor industry.


Further findings by Yole:
Generative AI training emerges as a leading compute application in data center settings, according to Yole Group's Processor Market Monitor.
Compute infrastructure serves as the backbone of the digital economy, supporting various processors controlling every digital device.
With the end of the lifecycle of smartphones and PCs acquired during the COVID-19 pandemic, premium versions of these devices are integrating generative AI capabilities.
This shift marks the beginning of the AI era, where processing power continues to be crucial in driving technological advancements.

Source: Yole