24.2% CAGR and the Race to 1927 Million: Why AI Server Interconnect Is No Longer a Commodity

Global Leading Market Research Publisher QYResearch announces the release of its latest report "PCIe Chip for AI Servers - Global Market Share and Ranking, Overall Sales and Demand Forecast 2026-2032".

Executive Summary: The Interconnect Imperative
For the past three years, the artificial intelligence infrastructure narrative has been dominated by a single component: the GPU. NVIDIA's H100 and B200, AMD's MI300, and emerging custom ASICs have captured headlines and capital allocation. Yet a parallel, less visible scaling crisis has been developing within the AI server chassis.

The PCIe interconnect-the serial bus linking GPUs to CPUs, to NVMe storage, and to network interface controllers-has become the systemic throughput governor. As GPU compute density doubles with each generation (H100 to B200: 4 petaFLOPS to 20 petaFLOPS), the data volume that must transit the PCIe fabric increases geometrically. The physical layer, constrained by copper trace length and signal integrity, now limits effective GPU utilization in multi-GPU configurations beyond 4-way scaling.

This constraint is not resolvable by GPU roadmap alone. It demands specialized PCIe silicon: retimers that restore signal integrity over extended traces, redrivers that compensate channel loss, and switches that fan-out limited CPU root ports to multiple GPU endpoints.

According to QYResearch's proprietary semiconductor database-developed over 19 years of continuous component-level monitoring and trusted by 60,000+ global clients-this interconnect enablement layer is experiencing hyper-growth detached from general semiconductor cycles. Valued at US$336 million in 2024, the global PCIe chip market for AI servers is projected to reach US$1.93 billion by 2031, registering a remarkable CAGR of 24.2% over the 2025-2031 period. Annual production volume reached 10.2 million units in 2024, with an average selling price of US$33.

For hyperscaler infrastructure architects confronting GPU idle time, server OEM product managers specifying next-generation platforms, and investors seeking compounders in the AI value chain, the PCIe chip is emerging as a critical capacity throttle and value capture node.

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I. Product Taxonomy: The Hierarchy of Interconnect Intelligence
The term "PCIe chip" encompasses three functionally distinct device classes, each with diverging competitive and technology trajectories:

1. PCIe Switches:
These devices fan-out a single PCIe root port (typically from a CPU) to multiple downstream endpoints (GPUs, NVMe drives, NICs). In a standard 8-GPU AI server, the PCIe switch is the traffic conductor, managing concurrent data flows without host CPU intervention. Broadcom (PEX family) and Microchip dominate this tier. Switch complexity scales with lane count (x48, x64, x96) and data rate (Gen5: 32 GT/s; Gen6: 64 GT/s).

2. PCIe Retimers:
As PCIe data rates increase, the electrical reach of a copper trace collapses. Gen5 signals can traverse approximately 8-10 inches of FR4 PCB before bit error rate exceeds specification. Retimers recover the clock and data, re-equalize the signal, and re-transmit, effectively extending reach to 20-24 inches. Astera Labs holds the dominant position in this rapidly growing category, having first-mover advantage with its Cloud-Scale Interconnect portfolio.

3. PCIe Redrivers:
A lower-complexity, lower-cost alternative to retimers, redrivers amplify the analog signal without clock recovery. Suitable for shorter channel extensions and lower-loss materials. Texas Instruments, Diodes Incorporated, and ASMedia compete in this price-sensitive segment.

独家观察 (Exclusive Insight):
The critical industry inflection point, unappreciated in general semiconductor coverage, is the transition from retimer-as-optional to retimer-as-mandatory at PCIe Gen5 and Gen6. In Gen4 generation (16 GT/s), many 2-GPU and 4-GPU servers avoided retimers entirely. Gen5 (32 GT/s) server designs, particularly 8-GPU HGX platforms, require 16-24 retimers per system. This bill-of-materials multiplication (from $0 to $500+ per server) is the primary driver of the 24.2% CAGR.

II. Market Architecture: Deconstructing the 24.2% CAGR
The six-year CAGR of 24.2% is not a cyclical recovery; it is a structural function of three simultaneous inflections:

1. GPU-to-CPU Ratio Expansion (Contribution: ~10% CAGR)
Training large language models scales near-linearly with GPU count per node. The transition from 4-GPU to 8-GPU to 16-GPU (projected 2026-2027) within a single server node geometrically increases PCIe topology complexity. Each additional GPU requires dedicated downstream switch ports and retimed upstream links. NVIDIA's HGX B200 platform, sampling Q4 2024, employs 32 PCIe Gen5 retimers per 8-GPU configuration-a 100% increase from the H100 generation.

2. Protocol Rate Doubling (Contribution: ~8% CAGR)
PCIe Gen6 introduces 64 GT/s data rate with PAM-4 signaling. Channel loss at Nyquist frequency exceeds 35 dB; retimers are required for virtually all inter-shelf connections beyond 2 inches. PCI-SIG's Gen6 final specification (December 2024) has triggered platform development cycles across cloud service providers. Astera Labs' Q1 2025 earnings call cited a 300% sequential increase in Gen6 retimer sampling revenue.

3. Rack-Scale Disaggregation (Contribution: ~6% CAGR)
The industry architecture is migrating from standalone servers to rack-scale resource pooling. GPUs, memory, and storage reside in physically separate drawers, interconnected via PCIe over copper cables or optical transceivers. This physical separation-extending PCIe links to 3-5 meters-mandates retimers at both transmit and receive ends. Broadcom's 2024 PCIe Switch Portfolio expansion included x96 lane count devices specifically optimized for rack-scale topologies.

III. Competitive Landscape: The Specialists and The Incumbents
The PCIe chip for AI servers exhibits an unusual competitive bifurcation:

Tier Strategic Posture Representative Players Critical Dynamic
Switch Incumbents Dominant in PCIe switching; defensive entry into retimers; pricing power in high-lane-count devices Broadcom, Microchip Switch ASP erosion mitigated by lane-count escalation (x48 → x96 → x144). Retimer offerings lag specialists by 12-18 months.
Interconnect Specialists Core competence in signal integrity and analog front-end design; first-mover advantage in Gen6 retimers; premium valuation Astera Labs, Montage Technology Design-in velocity at hyperscalers is primary competitive metric. Gross margins >60% reflect scarcity value.
General-Purpose Analog Retimer/redriver as portfolio extension; compete on cost and package compatibility Texas Instruments, Diodes, ASMedia Constrained by PCI-SIG compliance certification lead times and limited AI-specific applications engineering support.
Supply Chain Architecture:
All PCIe chips are fabricated on advanced CMOS nodes: 12 nm for Gen5, 7 nm/6 nm for Gen6. TSMC is the sole foundry source for leading-edge retimers (Astera, Broadcom, Montage). CoWoS packaging capacity, the critical constraint for GPUs, is not required for PCIe chips, insulating this segment from the most severe semiconductor supply bottlenecks.

IV. Technology Trajectory: 2025-2031
1. PCIe Gen7 and Optical Transition
PCI-SIG anticipates Gen7 specification finalization in 2027-2028, targeting 128 GT/s with PAM-8 signaling. Copper trace reach at this data rate will be

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