Narrative: Datacenter AI Accelerators Q3 2025 – Google’s AI Powerhouse Shines

AI processor and accelerator market hits $58B in Q3 2025 and is set to top $500B by 2028 on surging ASIC and GPU demand.

The total market for AI-driven processor chips and accelerator cards in Q3 2025 was $58 billion, consistent with our Q2 forecast, as US/China export restrictions are still under discussion, and we now expect it to surpass $500 billion by 2028, a year earlier than our previous forecast. We expect the market to reach $220 billion in 2025 (no change from the Q2 forecast). We forecast the market for AI CPUs and accelerators to surpass $800 billion in 2030, expanding at a 35% CAGR in value and 18% in volume. Our review of the ASIC accelerators forecast has led to an upward revision, fueled by the expansion of Google TPU and AWS Trainium capacity plans, and the faster growth of ASIC memory content compared to GPUs.