Counterpoint Research has released a report highlighting strong growth prospects in the artificial intelligence chip market, focusing on the non-GPU server AI chip segment—known as AI ASICs (Application-Specific Integrated Circuits). The analysis forecasts rapid expansion, with AI ASIC shipments expected to triple by 2027 compared to 2024 figures. This growth reflects robust demand and widespread adoption of these specialized AI chips across various industries and applications. The report further predicts that by 2028, AI ASIC shipments will exceed those of traditional GPU-based AI chips. While GPUs (Graphics Processing Units) have been central to AI computations, particularly for training and inference due to their parallel processing capabilities, AI ASICs are specifically designed for AI workloads, offering superior efficiency and performance. This makes them increasingly attractive for deployment in data centers and edge devices. Counterpoint Research expects the AI ASIC segment to surpass 15 million units shipped by 2028, signaling a significant shift in the AI hardware ecosystem—from generalized processors like GPUs to highly specialized ASICs optimized for specific AI functions. This evolution aligns with broader AI development trends: as AI models grow more complex and computational demands rise, there is increasing need for efficient, scalable hardware solutions. AI ASICs meet these needs by delivering higher speed, lower power consumption, and enhanced performance tailored to artificial intelligence and machine learning. Several factors drive the preference for AI ASICs. Their circuit-level optimization for tasks such as deep learning inference results in better energy efficiency than GPUs.

Additionally, ongoing advancements in semiconductor manufacturing and AI algorithms allow rapid iteration and adaptation of AI ASICs to evolving AI applications. Industry players and data center operators are expected to integrate AI ASICs increasingly, leveraging these advantages. This shift will reshape the competitive landscape for AI hardware providers, offering substantial growth opportunities to companies specializing in AI ASIC development. The report also highlights AI ASICs’ potential impact across sectors like cloud services, telecommunications, automotive, healthcare, and edge computing. Their scalability and specialization enable more efficient AI processing, supporting real-time analytics, autonomous systems, and improved user experiences. As AI technologies advance and permeate various areas of technology and society, the hardware supporting them must evolve accordingly. The projected tripling of AI ASIC shipments by 2027 and their expected overtaking of GPU shipments by 2028 mark a pivotal change in AI hardware dynamics. Counterpoint Research’s findings emphasize AI ASICs’ critical role in shaping the future of AI infrastructure, promising more targeted, efficient, and powerful AI processing that will accelerate global AI adoption and innovation. In summary, the AI ASIC segment is on the path to rapid growth, driven by increasing AI workload complexity and demand. With shipments set to triple by 2027 and surpass GPUs by 2028, AI ASICs represent a vital next phase in AI hardware evolution—reflecting technological advances and signaling significant opportunities and transformations across AI-dependent industries.