Global semiconductor revenue is set to cross the $1.3 trillion mark in 2026, marking the fastest expansion the industry has seen in more than twenty years, according to a new report released Wednesday by research firm Gartner.
The surge reflects a powerful combination of rising demand for artificial intelligence processing, expanding data centre infrastructure, and sharply increasing memory prices.
Gartner estimates the industry will grow by an impressive 64 percent in 2026, continuing a strong upward trajectory fueled largely by AI-driven technologies. Rajeev Rajput, Senior Principal Analyst at Gartner, noted that demand for AI processing, networking, power solutions, and memory components is creating sustained momentum, pushing the sector toward its third straight year of double-digit growth.
The numbers highlight just how quickly the market is expanding. Semiconductor revenue is projected to jump from $805.3 billion in 2025 to $1,320.2 billion in 2026, with further growth expected to reach $1,554.5 billion by 2027. A major contributor to this spike is the memory segment, where revenue is forecast to nearly triple, rising from $216.3 billion in 2025 to $633.3 billion in 2026. This dramatic increase is largely tied to surging memory chip prices.
Prices for key memory technologies are expected to climb steeply, with DRAM projected to rise by 125 percent and NAND flash by 234 percent in 2026. Gartner suggests that any meaningful correction in these prices is unlikely before late 2027, keeping pressure on buyers across the market.
Artificial intelligence continues to dominate the narrative, with AI-related semiconductors expected to account for roughly 30 percent of total industry revenue in 2026. Spending by hyperscalers on AI infrastructure is forecast to grow by more than 50 percent, significantly boosting demand for AI accelerators such as GPUs and custom-designed chips.
If this article helped you, please consider supporting our work. Every small contribution keeps Abijita.com independent and running.
