Overall, JP Morgan Research estimates that generative AI could increase global GDP by $7-10 trillion, or up to 10%. “We affirm our extremely bullish view, established over a year ago, on the importance of generative AI. The technology is driving a powerful wave of technology investment, with co-pilots and other generative AI product cycles launching in the near term,” Murphy said. “Indeed, venture investments are rapidly shifting from cloud and crypto to generative AI, and a significant percentage of Y Combinator companies are in this space as well.”
While generative AI is undoubtedly a huge boon to the software industry, hardware manufacturers are also expected to benefit from adopting this technology. “The AI supply chain is dynamic, with continued strong demand for AI training materials and emerging demand for various AI inference solutions – both likely to support AI demand until in 2024 and beyond,” Hariharan noted. This will boost the global semiconductor market, which is expected to witness 16% revenue growth in 2024 and increased demand through 2025.
Investments in other AI infrastructure will also continue to grow, particularly for servers, switches and optics, according to Samik Chatterjee, head of the hardware and networking equipment research team at JP Morgan . “Leveraging AI for certain sections of our broader hardware coverage will likely be a boon,” Chatterjee said.
AI endpoints such as smartphones and PCs will also likely see a resumption of product launches in the second half of 2024, with higher adoption in 2025. “These will focus on local inference to enable low latency and personalized experiences. while also leveraging more complex audio and visual interactions such as gesture and facial recognition,” added Chatterjee.
