Global semiconductor revenue is projected to cross $1.3 trillion in 2026, according to Gartner’s latest forecast released on April 8, 2026. Gartner said the market is heading for its strongest growth in two decades, supported by demand for AI processors, data center networking gear and memory chips. Gartner estimated total industry revenue at $1,320.2 billion in 2026, up from $805.3 billion in 2025 in its forecast table.
“Amid high demand for AI processing, data center networking and power, and memory price inflation (memflation), the semiconductor industry is projected to achieve a third consecutive year of double-digit growth in 2026,” said Rajeev Rajput, Senior Principal Analyst at Gartner.
The report points to a sharp change in the semiconductor cycle, Gartner said semiconductor revenue is expected to grow 64% in 2026, while memory revenue is forecast to rise almost threefold because of what it described as “memflation,” or rising memory prices. DRAM prices may rise 125% in 2026 and NAND flash prices 234%, with meaningful price relief unlikely until late 2027.
Gartner said AI is now central to the chip market. It expects AI semiconductors to account for about 30% of total semiconductor revenue in 2026, driven by continued hyperscaler spending on AI infrastructure. The company said that spending on AI infrastructure buildouts is expected to increase by more than 50% in 2026, supporting demand for GPUs and custom non-GPU chips.
In January, Gartner said worldwide semiconductor revenue reached $793 billion in 2025, up 21% year over year. NVIDIA became the first semiconductor vendor to cross $100 billion in sales, while AI semiconductors accounted for nearly one-third of total sales last year.
Gartner’s outlook is also more aggressive than another major industry estimate published earlier this year. In February, Reuters reported that the Semiconductor Industry Association projected global chip sales to reach $1 trillion in 2026, after $791.7 billion in 2025. That comparison shows the scale of the current debate in the chip industry: demand is still strong, but the exact speed of growth depends on AI spending, memory pricing and how long supply constraints last.
For the tech sector, the report matters because it confirms that semiconductors are no longer just a support industry. Gartner’s numbers suggest chips remain tied directly to AI infrastructure, cloud expansion and memory shortages, which means chip makers, equipment suppliers and data center vendors may continue to see strong order books through 2026. At the same time, the report warns that higher memory prices could pressure some non-AI demand into 2028.
[ Related Post: Worldwide Semiconductor Market Posts Robust 21% Revenue Growth in 2025; AI Chips Drive Industry Realignment, Says Gartner ]
