Q2 Semiconductor Pulse: AI Demand Is Rewriting the Rules for Chipmakers
What Advisors Need to Know About Emerging $1 Trillion-Plus Chipmakers
The semiconductor industry is on pace to exceed $1.5 trillion in revenue in 2026, four years sooner than Intel's CEO projected back in 2022. That acceleration traces directly to Artificial intelligence.
That being said, data centers can't get enough AI processors, and hyperscaler capital expenditure continues climbing to meet that demand.
This constraint benefits a concentrated group of chipmakers. Nvidia is on pace to generate $500 billion in revenue in 2027 alone, with the bulk of it coming from AI GPUs. Broadcom's AI custom chip business is growing even faster on a percentage basis. The effects extend beyond the US, with global memory suppliers seeing DRAM revenue accelerate as AI storage needs climb.
This growth isn't evenly distributed. While AI processors and memory chips are running far above their historical growth rates, PC and smartphone processors face real headwinds. Download Morningstar's complete Industry Pulse report for the full analysis of these trends.
