Gartner Forecasts Global Semiconductor Revenue to Hit Record $1.3 Trillion in 2026

Gartner has projected worldwide semiconductor revenue will exceed $1.3 trillion in 2026 — a massive 64% year-over-year jump, marking the strongest growth in two decades. Memory chips (driven by “memflation” and AI demand) are expected to nearly triple in revenue, with DRAM prices rising 125%.

Details: AI remains the primary driver, but non-memory segments are also growing strongly. Key beneficiaries include Nvidia, Broadcom, AMD, and memory leaders like Samsung and SK Hynix. However, advanced packaging and high-bandwidth memory (HBM) continue as critical bottlenecks.

Impact: This forecast reinforces the AI-driven semiconductor supercycle but warns of structural challenges like supply constraints and potential over-investment. It lifts sentiment for chip stocks while highlighting risks of a “memory crunch” affecting consumers and data centers into 2027. For Pakistan and South Asia, it signals ongoing demand for IT services, semiconductor testing/packaging roles, and talent in the global supply chain amid diversification efforts.