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      Home TechNews Artificial Intelligence

      AI Chip Market to Hit a $100 Billion Value in 2026!

      Md. Nazrul Islam by Md. Nazrul Islam
      May 23, 2025
      in Artificial Intelligence
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      The AI chip market has grown tremendously over the past few years, and this trend shows no signs of slowing down in 2025. Huge improvements in machine learning, rapid growth in cloud use, and AI startup boom have pushed tech giants like NVIDIA, AMD, and Google to continuously raise the bar in chip performance, helping the market to reach record value.

      According to data presented by Stocklytics.com, after two straight years of 30% annual growth, the global AI chip market is close to reaching a massive $100 billion value.

      ADVERTISEMENT

      Market Value Grows by an Average of $20 Billion Per Year

      For the past three years, artificial intelligence has been the top technology, driving innovation, setting new standards, and fueling the tech industry’s impressive growth, and AI chips have been at the heart of this change. Their remarkable growth continued in 2025 despite the tech market facing one of its hardest starts to the year ever. High demand, limited supply, export restrictions, and AI chip stockpiling have made AI chips more expensive and harder to find. But despite this, market projections remain optimistic.

      According to the latest Gartner survey released earlier this month, the global AI chip market is expected to grow by 29% and hit nearly $92 billion value in 2025, following an impressive 32% surge from last year.

      ADVERTISEMENT

      With this pace of growth, the market will continue adding around $20 billion in value annually, meaning it could reach the $100 billion mark in the first half of 2026. This figure becomes even more impressive compared to other AI industry segments. With a projected $100 billion value in 2026, AI chips will be 40% smaller than the machine learning market, three times bigger than the AI robotics and computer vision sectors, and nearly 30% larger than the NLP market.

      Market Forecast Remains Optimistic, but AI Chip Giants Still Struggle to Recover

      Despite optimistic market forecasts and AI chips reaching a new massive milestone, the largest companies in this market are still in the red.

      Since January, the world’s five biggest AI chip producers, NVIDIA, AMD, Intel, Google, and Amazon, have collectively lost over $1.1 trillion in combined stock value, with Nvidia and Google each wiping out more than $400 billion.

      Statistics show Amazon’s market cap dropped by $270 billion, while AMD lost nearly $30 billion year-to-date. Surprisingly, Intel, the biggest loser among AI chip giants in 2024, is the only winner this year. After struggling with tough competition, manufacturing setbacks, and a 60% stock plunge last year, Intel’s market cap jumped by $7.2 billion in 2025, marking the only gain among the top five AI chip producers.

      Tags: AI chip marketartificial intelligenceArtificial Intelligence (AI)
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