Artificial Intelligence (AI) Chip Market is Expected to Reach USD 295.56 Billion by 2030
Published: 2025-09-16
Extensive Adoption of Artificial Intelligence Drives Demand for the AI Chip Market Demand
According to the Next Move Strategy Consulting, the global AI Chip Market is valued at USD 52.92 billion in 2024, and is expected to reach USD 295.56 billion by 2030, with a CAGR of 33.2% from 2025 to 2030.
The exponential rise in AI adoption across industries is driving significant demand for AI chips. AI enhances diagnostics in healthcare, powers autonomous vehicles in the automotive sector, and enables fraud detection in finance. Retail uses AI for customer behavior analysis, and edge computing with IoT devices requires real-time data processing.
Consumer electronics also contribute to this demand for efficient AI chips. As per the PwC AI Impact Index, adoption maturity rates for the next 3+ years are 54% in retail, 47% in technology, communications, and entertainment, 41% in financial services, 37% in healthcare, and 35% in the automotive sector.
Moreover, the rising emphasis towards the Government bodies and key players to support AI accelerators is driving AI chip market growth through policies, funding, and initiatives. Deloitte Insights notes semiconductor giants spent USD 300 million on AI design tools in 2023, expected to rise to USD 500 million by 2026.
Governments provide grants, tax incentives, and funding, lowering entry barriers and fostering innovation. The U.S. Chips and Science Act offers USD 39 billion in grants and other incentives, while Germany is investing in major chip factories with Intel and TSMC, with 50% government funding.
However, the global chip shortage significantly restrained AI chip demand, despite their growing necessity. Limited manufacturing capacity and supply chain disruptions have extended wait times, while foundries prioritize legacy nodes. Geopolitical tensions in Asia, a key production hub, and increased domestic chip production efforts in Europe, Japan, and India further complicate the issue. According to the Semiconductor Industry Association, global semiconductor sales totaled USD 526.8 billion in 2023, down 8.2% from 2022.
On the other hand, the introduction of new 2nm chips provides a massive boost in performance, cut the power consumption by more than half, and enables OEMs to double the number of cores both for high-end models and act as a replacement for static random access memory. By offering 5nm processor chips for AI applications earlier than its rivals, TSMC got a considerable lead of one year. With its 2nm chip making procedure, TSMC is ready to start mass production in 2025 using advanced nanosheet transistor structures. This achievement will further enable the growth of next-generation AI hardware for autonomous vehicles, edge computing, and smart gadgets.
Also, the rise of new data-intensive applications presents the opportunity for AI accelerator models to dramatically change their focus to algorithms that are specifically crafted to work on these cutting-edge software stacks.
The report includes profiles of several key AI chip industry players such as NVIDIA Corporation, Advanced Micro Devices, Inc. (AMD), Intel Corporation, Google LLC (Alphabet Inc.), Amazon Web Services, Inc. (AWS), Microsoft Corporation, Apple Inc., Qualcomm Incorporated, Huawei Technologies Co., Ltd. (Ascend / HiSilicon), Alibaba Group Holding Ltd. (T-Head / Pingtouge), International Business Machines Corporation (IBM), Tesla, Inc., Samsung Electronics Co., Ltd., Graphcore Limited, Cerebras Systems, Inc., Groq, Inc., SambaNova Systems, Inc., Cambricon Technologies Corporation Limited, Tenstorrent Inc., MediaTek Inc. among others.
These key players are adopting strategies such as product launch and partnership across various regions to maintain their dominance in the artificial intelligence (AI) chip market.
For instance, in September 2025, NVIDIA Corporation, Announced its new Rubin CPX AI chip, part of the Rubin architecture, designed for video generation and long-context AI workloads.
Also, in July 2025, Advanced Micro Devices, Inc. (AMD), Reported 4× performance gains of MI350 series over the previous MI300X generation, with benchmarks showing competitiveness against NVIDIA’s Blackwell GPUs.
In addition, in October 2024, Apple Inc., Introduced updated NPUs in its A-series and M-series chips with stronger AI capabilities, supporting on-device vision and language models.
Key Insights from the AI Chip Market Report:
The information related to key drivers, restraints, and opportunities and their impact on the AI chip market trends is provided in the report.
The value chain analysis in the market study provides a clear picture of the role of each stakeholder.
The market share of the global AI chip market players and their competitive analysis are provided in the report.
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