Narrative: Datacenter Compute Processors Q4 2024
Uncover what's driving the $136.3B datacenter processor boom—GPU dominance, ASIC growth, AI trends, and rising custom silicon demand.
The datacenter processor market value was $136.3 billion (+108%) in 2024. The market comprises datacenter GPUs (66%), CPUs (17%), ASICs (15%), and FPGAs(<2%). Strong GPU sales, sustained ASIC demand, and a rebound in the CPU market, particularly from hyperscalers and AI adoption, drive the market. ASICs are the fastest-growing segment, projected to catch up with GPU shipments by 2026. Hyperscalers are driving the growth of the custom silicon market, leading to significant revenue opportunities for companies like Broadcom, Marvell, Alchip Technologies, and MediaTek. Despite trade tensions and geopolitical factors, there are solid growth prospects for the datacenter processor market. Despite challenges, China is actively pursuing self-sufficiency in datacenter processors, semiconductor manufacturing, and memory production.
