AI Market Outlook 2025: Key Insights and Trends

The AI Market Outlook for 2025 highlights the continued expansion of AI infrastructure investment as the race to build comprehensive large-scale models drives demand. AI hardware—particularly chips and accelerators—is poised for steady growth despite a slower purchasing pace among hyperscalers. In 2023, these tech giants accounted for 53% of chip purchases, spurring a 156% market growth from 2023 to 2024. While demand from hyperscalers is expected to moderate, growth of 41% is still forecast from 2025 to 2026.

Enterprises are moving from cloud reliance to in-house AI infrastructure investments, particularly for cost-effective inference solutions. Startups are poised to make an impact by providing affordable, specialized chips for enterprise needs.

Edge AI is also gaining traction, with AI-enabled PCs and mobile devices set to expand. Both Microsoft and Apple have driven this trend by incorporating AI into operating systems, doubling projected sales of NPU-enabled processors in 2025.

In data centers, AI chip sales reached $154 billion in 2023, with leaders like Intel, AMD, and NVIDIA predicting continued growth. Despite market adjustments, the AI hardware sector is set for further expansion, driven by evolving data center and edge demands.

TechInsights' AI Outlook Report 2025 offers in-depth analysis, growth projections, and key trends shaping the future of AI hardware markets across hyperscale, enterprise, and edge segments. Equip your strategy with industry-leading insights. Download the report now and stay ahead in the AI race.