Gartner predicts global semiconductor revenue will reach $1.3 trillion in 2026. This forecast represents a 64% increase from current levels. The growth marks the strongest expansion for the industry in over two decades. The market expects 2026 to be the third consecutive year of double-digit growth.
AI chips, data center infrastructure, and soaring memory prices drive this expansion. Gartner identifies a trend of memflation as a primary catalyst for revenue. DRAM prices are projected to increase by 125%. NAND flash prices are expected to surge by 234%. High component costs may strain non-AI related demand through 2028.
AI semiconductors will account for approximately 30% of total market revenue in 2026. Hyperscalers plan to increase AI infrastructure investment by over 50% during that year. The report underscores the semiconductor industry's central role in the expanding AI economy.