YG PRESS NEWS – Processor industry: thriving amidst demand challenges with AI acceleration

Product Related

The CPU and GPU markets have been adversely affected by a significant drop in consumer demand, even as advancements in AI innovation and chiplet integration continue to progress.

  • The processor revenue is projected to hit US$242 billion by 2028, growing at a compound annual growth rate (CAGR) of 8% from 2022 to 2028.
  • Consumer sectors continue to face challenges, but the data center sector shines brightly with the influence of AI.
  • The landscape of the processor market is in a constant state of change, with emerging architectures posing a significant challenge to established players in key application areas.

According to Yole Intelligence, part of Yole Group, in the Processor Market Monitor, consumer electronics demand remains under strain due to macro-economic factors, although there are indications of a potential rebound in the latter half of the year. The encouraging development currently is the increasing enthusiasm for generative AI applications, which is generating robust demand for machine learning acceleration systems. This is giving a boost to high-performance computing (HPC) and acceleration, particularly in the data center GPU segment. After achieving record quarterly revenue in FQ2-24, Nvidia has projected even higher revenues for FQ3-24, reflecting the ongoing competition in the AI acceleration arena… For more information about this analysis, please contact us!

Titre du visuel

june 2021

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