Artificial Intelligence Chip Market Size Forecast: Revenue and CAGR by 2029

November 14, 2025 by The Business Research Company

Unlock Global Insights – Save 20% on Market Reports with Code ONLINE20

What Market Value Is The Artificial Intelligence Chip Industry Expected To Reach By 2029, Starting From 2025 Levels?

The global market for artificial intelligence chips has experienced rapid expansion recently, projected to increase its valuation from $29.65 billion in the year 2024 to $40.21 billion by 2025, marking a substantial compound annual growth rate (CAGR) of 35.6% during this forecast period; this historical upward trend finds its roots in several key factors, including the burgeoning volume of data being created, advancements within the healthcare industry, significant capital infusion into AI-focused research, an upswing observed in the retail and e-commerce sectors, and broader economic expansion.

Anticipating a period of rapid expansion, the market centering on artificial intelligence chips is projected to reach a valuation of $157.98 billion by the year 2029, driven forward by a robust compound annual growth rate (CAGR) of 40.8%; this significant upswing across the projection timeframe is fueled by several key factors, notably the escalating need for applications that process substantial amounts of data, progress in machine learning methodologies, the burgeoning automotive industry, increasing activity within financial services, and the continuing trend of urbanization. In terms of major developments shaping this market during the forecasted years, key shifts involve the customization of AI hardware solutions, the acceleration of AI processing at the edge, the incorporation of quantum computing capabilities, the rise of neuromorphic computing architectures, and a persistent focus on developing AI chips that demonstrate enhanced energy efficiency.

Unlock Your Free Sample Report for Exclusive Market Data:

https://www.thebusinessresearchcompany.com/sample.aspx?id=7639&type=smp

What Are The Drivers Pushing New Developments In The Artificial Intelligence Chip Market?

The future expansion of the artificial intelligence chip sector is anticipated to be fueled by a rising need for intelligent residences and urban centers. A smart city basically describes an urban area employing digital or information-communication technology to enhance the ease and effectiveness of human living. A method of urbanization pursuing lasting progress involves furnishing metropolises with advanced capabilities, enabling inhabitants to reside, navigate, shop, and experience enhanced safety and ease. Illustrating this, evidenced by a March 2022 report in Arab News, a prominent Middle Eastern English newspaper, Saudi Arabia initiated a novel smart city endeavor in Jeddah dedicated to light manufacturing and vehicle maintenance, unveiling the initial two phases, with the second phase encompassing a labor hub spanning 500,000 square meters within the overall 5 million square meter Smart City project. Moreover, this urban development, in alignment with Saudi Vision 2030, Saudi Arabia’s strategic blueprint, is characterized by integrated infrastructure and the deployment of digital and smart technologies to deliver automated services to users. Consequently, the escalating requirement for smart homes and smart cities serves as the catalyst propelling the market for artificial intelligence chips.

What Are The Primary Types Of Segments Analyzed In The Artificial Intelligence Chip Market?

The artificial intelligence chip market covered in this report is segmented –

1) By Chip Type: GPU, ASIC, FPGA, CPU, Other Chip Types

2) By Processing Type: Edge, Cloud

3) By Technology: System-On-Chip (SoC), System-In-Package (SIP), Multi-Chip Module, Other Technologies

4) By Application: Natural Language Processing (NLP), Robotics, Computer Vision, Network Security, Other Applications

5) By Industry: Media and Advertising, BFSI, IT and Telecom, Retail, Healthcare, Automotive and Transportation, Other Industries

Subsegments:

1) By GPU (Graphics Processing Unit): Consumer GPUs, Data Center GPUs, Integrated GPUs

2) By ASIC (Application-Specific Integrated Circuit): Deep Learning ASICs, Neuromorphic ASICs

3) By FPGA (Field-Programmable Gate Array): Standard FPGAs, High-Performance FPGAs

4) By CPU (Central Processing Unit): General-Purpose CPUs, AI-Optimized CPUs

5) By Other Chip Types: DSP (Digital Signal Processor), RISC-V Chips, Hybrid Chips

How Are Trends Influencing The Artificial Intelligence Chip Market?

Leading enterprises within the realm of artificial intelligence chips are currently making strides in their innovative technologies and dedicated research initiatives concerning these chips, exemplified by developments like the Atom AI chip, which is specifically engineered for superior performance in computer vision and chatbot AI applications. As an illustration, Rebellions Inc., a corporation situated in South Korea known for creating generative AI chips, introduced Atom in February 2023; this particular chip incorporates a distinct decentralized programming paradigm and technology intended to equip users with exceptionally potent yet energy-saving AI hardware, complemented by straightforward software integration. Furthermore, this recently released chip boasts ultra-low power consumption, reportedly utilizing merely approximately 20% of the energy drawn by competing high-performance chips in the current market, and it is anticipated to furnish users with a tailor-made AI processing unit supported by highly refined accompanying software.

Who Are The Primary Competitors In The Global Artificial Intelligence Chip Market?

Major companies operating in the artificial intelligence chip market include Intel Corporation, Mediatek Inc, NVIDIA Corporation, Qualcomm Technologies Inc., Advanced Micro Devices Inc, Alphabet Inc, NXP Semiconductors N.V, Micron Technology Inc, IBM Corporation, Apple Inc, Huawei Technologies Co Ltd, Mythic Inc, Samsung Electronics Co ltd., LG Corporation, Google LLC, Advanced Micro Devices Inc, Baidu, Mellanox Technologies, Xilinx Inc., Graphcore, Cerebras Systems, Habana Labs, Vinova Pte Ltd., MemryX Inc., BrainChip Holdings Ltd., NeuReality Ltd.

Download The Full Report For Exclusive Market Findings:

https://www.thebusinessresearchcompany.com/report/artificial-intelligence-chip-global-market-report

Which Geographies Are Emerging As Strong Markets For The Artificial Intelligence Chip Industry?

North America was the largest region in the artificial intelligence chip market in 2024. The regions covered in the artificial intelligence chip market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Request A Customized Version Of The Artificial Intelligence Chip Market Report:

https://www.thebusinessresearchcompany.com/customise?id=7639&type=smp

Browse Through More Reports Similar to the Global Artificial Intelligence Chip Market 2025, By The Business Research Company

Wireless Telecommunication Carrier Global Market Report 2025

https://www.thebusinessresearchcompany.com/report/wireless-telecommunication-carrier-global-market-report

5G Services Global Market Report 2025

https://www.thebusinessresearchcompany.com/report/5g-services-global-market-report

5G Infrastructure Equipment Market 2025

https://www.thebusinessresearchcompany.com/report/5g-infrastructure-equipment-market

Get in touch with us:

The Business Research Company: https://www.thebusinessresearchcompany.com/

Americas +1 310-496-7795