Analysis: Five Key Trends for Compute in 2025
AI is driving a computing boom, with datacenter demand soaring. Hyperscalers and custom chip designs challenge NVIDIA, while AI shifts toward edge devices.
Artificial intelligence (AI) is driving a boom in computing. As confirmed by quarterly earnings from leading hyperscalers Amazon, Microsoft, and Google, demand for AI datacenters remains high. TSMC’s revenue from AI accelerators (AI GPU, AI ASICs, and HBM controller for AI training and inference in the datacenter) tripled in 2024 and is expected to double in 2025. We expect AI to shift from centralized datacenters to local and edge devices, although datacenter demand will continue to take center stage in 2025. We see NVIDIA facing competition from hyperscalers developing custom devices and chip architecture evolving with SoC, advanced packaging, and chiplets, driving growth in the intellectual property (IP) market, particularly for CPU interconnects and memory interfaces. Architectures are diversifying, with Arm and RISC-V gaining traction alongside custom designs for NPUs and accelerators.
