The global data center processor market, valued at $147 billion in 2024, is projected to reach $372 billion by 2030, driven by the rapid expansion of generative AI, according to Yole Group’s 2025 report, Generative AI – Computing & AI for Data Centers. The server GPU market, led by Nvidia with over 90% market share, reached $101 billion in 2024 and is expected to exceed $200 billion by 2030. AI ASICs, peaking at $9 billion in 2024, are forecasted to experience double-digit annual growth through 2030, supported by hyperscalers like Google, AWS, and Huawei developing custom chips such as TPUs, Trainium, and Ascend.
The server CPU market, dominated by Intel and AMD with an 80% share, is projected to grow to $35.6 billion by 2030 but faces competition from Arm-based alternatives like Amazon’s Graviton, Google’s Axion, and Nvidia’s Grace. Other segments include server FPGAs ($1.5 billion by 2030), DPUs and network ASICs ($17.7 billion), and crypto ASICs ($4.2 billion). Mergers and acquisitions, such as SoftBank’s acquisition of Graphcore, AWS’s $700 million investment in Tenstorrent, and the Rebellions-Sapeon merger in South Korea, reflect the increasing value of AI chip expertise.
Geopolitical factors are shaping the market, with countries investing in local AI infrastructure amid U.S. export controls limiting China’s access to advanced chips. China is accelerating domestic semiconductor development, while Huawei expands its CPU and AI ASIC efforts. Nvidia is also developing export-compliant chips to navigate these restrictions. Yole Group’s reports, including Status of the Processor Industry 2025 and the Processor Market Monitor Q2 2025, highlight how generative AI is driving a shift toward custom silicon and redefining global compute infrastructure.
