Datacenter Computing Processors Q2 2024
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The overall Datacenter Computing Processor market was $29.7 billion in Q1 2024, close to +200% year-over-year (3x), driven by stellar GPU shipments and sustained ASIC demand. The CPU and FPGA markets are bottoming out with accelerated year-over-year growth expected through 2024. The demand for computing driven by Artificial Intelligence and Large Language Models, the forthcoming refresh cycle of Xeon, and the competition between Cloud Service Providers (CSP) command massive growth for the next five years. This growth trajectory is set to make the Datacenter Computing Processor market the largest and fastest-growing semiconductor vertical, with a market projected to reach $388 billion in 2029 at a +33% CAGR. ASIC and custom CPUs are expected to grow rapidly in the forecast period, limiting the growth opportunity for merchant vendors.
