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Global semiconductor revenue is expected to reach $1.6 trillion in 2026, up 92% from $809 billion in 2025, according to Gartner. The firm forecasts the market will total $1.9 trillion in 2027.
"The semiconductor industry is entering a fundamentally new phase of growth," said Ben Lee, director analyst at Gartner. "The pace of industry expansion is accelerating dramatically, driven by sustained investment in AI infrastructure and a stronger-than-anticipated memory pricing cycle." Lee said AI infrastructure is reshaping investment across the semiconductor ecosystem and redefining the industry's application mix, with the AI data center ecosystem expected to grow from 36.5% of semiconductor revenue in 2026 to more than 53% by 2030.
Memory revenue is forecast to total $837 billion in 2026 and surpass $1 trillion in 2027, according to Gartner, remaining the primary contributor to semiconductor industry growth this year. The firm said memory is projected to account for 54% of total semiconductor revenue in 2026, up sharply from 27% in 2025.
DRAM revenue is forecast to increase 246.6% in 2026, while NAND flash revenue is expected to grow 371.9%, according to Gartner. The firm said supply-demand conditions are projected to remain tight through 2027, even as additional capacity enters the market, as AI infrastructure deployments continue to increase memory consumption.
"AI infrastructure has fundamentally changed the dynamics of the memory market," said Shrish Pant, director analyst at Gartner. "While pricing expansion is accelerating growth in 2026, continued AI infrastructure deployments, higher memory content per AI server and sustained demand for high-bandwidth memory will support memory revenue growth through 2027 and beyond."
AI clusters are becoming larger, faster and more power-intensive, according to Gartner, requiring increasing investment in CPUs, networking silicon, power management, analog devices and optical interconnect technologies. "AI is expanding the semiconductor opportunity across the entire infrastructure stack rather than benefiting a single device category," Lee said. Excluding memory, Gartner forecasts semiconductor revenue to grow from $589 billion in 2025 to $718 billion in 2026, an increase of 21.9%, and reach $864 billion in 2027.
"The semiconductor industry is entering a fundamentally new phase of growth," said Ben Lee, director analyst at Gartner. "The pace of industry expansion is accelerating dramatically, driven by sustained investment in AI infrastructure and a stronger-than-anticipated memory pricing cycle." Lee said AI infrastructure is reshaping investment across the semiconductor ecosystem and redefining the industry's application mix, with the AI data center ecosystem expected to grow from 36.5% of semiconductor revenue in 2026 to more than 53% by 2030.
Memory revenue is forecast to total $837 billion in 2026 and surpass $1 trillion in 2027, according to Gartner, remaining the primary contributor to semiconductor industry growth this year. The firm said memory is projected to account for 54% of total semiconductor revenue in 2026, up sharply from 27% in 2025.
DRAM revenue is forecast to increase 246.6% in 2026, while NAND flash revenue is expected to grow 371.9%, according to Gartner. The firm said supply-demand conditions are projected to remain tight through 2027, even as additional capacity enters the market, as AI infrastructure deployments continue to increase memory consumption.
"AI infrastructure has fundamentally changed the dynamics of the memory market," said Shrish Pant, director analyst at Gartner. "While pricing expansion is accelerating growth in 2026, continued AI infrastructure deployments, higher memory content per AI server and sustained demand for high-bandwidth memory will support memory revenue growth through 2027 and beyond."
AI clusters are becoming larger, faster and more power-intensive, according to Gartner, requiring increasing investment in CPUs, networking silicon, power management, analog devices and optical interconnect technologies. "AI is expanding the semiconductor opportunity across the entire infrastructure stack rather than benefiting a single device category," Lee said. Excluding memory, Gartner forecasts semiconductor revenue to grow from $589 billion in 2025 to $718 billion in 2026, an increase of 21.9%, and reach $864 billion in 2027.
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