Bernstein Raises AI Server and Chip Shipment Forecasts for 2026-2028, Predicts Global Server Market to Hit $1 Trillion by 2028

According to Bernstein's latest report, despite an AI supply chain stock selloff in July, the investment firm raised its 2026-2028 shipment forecasts for AI servers and semiconductor chips, citing continued capex increases by the four major cloud providers. Bernstein projects the global server market will exceed $1 trillion by 2028, with AI servers experiencing 22% annual growth through 2028.

The report highlights 2026 as a pivotal year for ASIC (custom AI chips), with ASIC accounting for approximately 45% of advanced-packaged AI chip shipments. Google's TPU shipments are projected to surge over 90% this year. The overall XPU market (GPU plus ASIC) is expected to expand from roughly $190 billion last year to approximately $500 billion by 2027.