Chipmakers laughing all the way to the vault as memory prices go stratospheric
Gartner reckons $1.6 trillion year is just the start, and don't expect a bust anytime soon
Chipmakers are enjoying record profits as memory chip prices soar to unprecedented heights, according to industry projections. Gartner predicts semiconductor revenue will nearly double to $1.6 trillion in 2026, up from $809 billion in 2025. Memory chips, including DRAM and NAND, are driving the growth, with revenue expected to triple or quadruple.
By 2027, memory revenue could surpass $1 trillion for the first time. The surge is attributed to the AI infrastructure boom, which is fueling demand for high-end servers and GPUs. Major manufacturers like Samsung, Micron, and SK Hynix are prioritizing memory chip production, leading to shortages of mainstream memory types for consumer electronics and driving up prices.
Despite a projected 15 percent shrink in the smartphone market this year, chipmakers have secured long-term supply contracts with big customers, locking in high prices. Gartner's director analyst Ben Lee says AI infrastructure has fundamentally altered the memory market, with demand expected to grow from 36.5 percent of semiconductor revenues in 2026 to over 53 percent by 2030. The long-term memory supply crunch is expected to persist through 2028.
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