Microsoft’s 16 GB Baseline For AI PCs To Propel Memory Growth In Consumer Market, 40% AI Servers Growth In 2024

AI PCs for consumers and AI servers are expected to witness huge growth in 2024 with Microsoft propelling the memory segment with its new baseline of 16 GB system RAM.

Tech giants such as Microsoft and Google are dragged into an "AI race", with the sole aim of integrating the capabilities of generative AI into mainstream consumer applications, and we have seen glimpses of it with Microsoft's Bing AI and Google's Bard. However, moving into the future, things are expected to take a new turn, since firms are moving towards developing Edge AI, which refers to deploying artificial intelligence algorithms and models directly on devices, such as smart-phones (offline/local processing), rather than on cloud or data centers.

TrendForce reports that the global AI server market is expected to exceed the 1.6 million unit barrier in 2024, which records a 40% YoY growth. The growth is associated with the rapid development of artificial intelligence in markets along with the focus of CSPs (Cloud Service Providers) shifting into this segment. This means suppliers such as NVIDIA and AMD are going to see another layer of "financial gains" this year.

Another emerging area in the tech industry is the adoption of AI PCs, and how they could play a vital role in the development of AI markets. With current-gen products such as Intel's Meteor Lake, a foundation has been set, which would be strengthed with the debut of future lineups, especially Team Blue's Lunar Lake, which is expected to bring significant advancements in the domain of AI computation. Intel has touted up to 3x faster NPU performance for Lunar Lake while also adding AI-specific accelerators within its Arrow Lake gaming lineup.

Moreover, the emergence of new competition, such as Qualcomm's Snapdragon Elite X and AMD's next-gen Strix Point lineup of CPUs, will also catalyze the growth of these markets, intensifying the battle between the x86 and Arm CPU architectures.

Trendforce also highlights that since Microsoft has increased the baseline requirements for the AI PC segment to 16 GB memory (LPDDR), this will in return mark a positive signal for the DRAM and memory industry as the demand for higher capacity memory increases as we go into the future of the AI PC segment.

2024 holds great optimism for the tech industry, at least what the market researchers have indicated. Tremendous growth is expected to be witnessed in the PC and client businesses and it will be interesting to see how the future pans out, in terms of innovation and competition.

News Source: TrendForce