Market research firm Gartner forecasts that global semiconductor revenue will exceed USD 1.3 trillion in 2026, representing 64% growth – the strongest growth in more than two decades – driven by continued strong demand related to AI, data centers and rising memory prices.

According to Gartner, 2026 will mark the third consecutive year of double-digit growth for the semiconductor industry, underlining the sector’s central role in the rapidly expanding AI economy.

"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 – a milestone that underscores the sector’s pivotal role in the AI technology stack,” said Rajeev Rajput, Senior Principal Analyst at Gartner, in a press release.

Sharp increase in memory prices

Memory revenue is expected to triple in 2026, largely driven by memflation – sharply increasing DRAM and NAND flash prices. Gartner forecasts DRAM prices to increase by 125% in 2026, while NAND flash prices are expected to increase by 234%. Any meaningful price relief is not expected until late 2027.

The price increases are also expected to impact demand outside the AI segment. “Memflation will destroy, or at least delay, non-AI demand into 2028, to varying degrees depending on the application,” Rajput said.