Semiconductor market lift

Gartner said on April 8 that global semiconductor revenue is projected to reach $1.32 trillion in 2026, lifted by artificial-intelligence chips and a sharp rise in memory prices. (gartner.com) The research firm forecast 64% industry growth in 2026, with memory revenue rising to $633.3 billion from $216.3 billion in 2025. It said AI semiconductors will make up about 30% of total chip revenue next year. (gartner.com) The price move is concentrated in memory, the chips that store data for servers, phones and laptops. Gartner said average 2026 prices for dynamic random access memory will rise 125% and NAND flash 234%, with meaningful relief not expected until late 2027. (gartner.com) That forecast landed just before SK hynix posted first-quarter 2026 results showing how the cycle is hitting company earnings. The South Korean memory maker reported revenue of 52.5763 trillion won, operating profit of 37.6103 trillion won and net profit of 40.3459 trillion won. (news.skhynix.com) SK hynix said revenue topped 50 trillion won for the first time in a quarter, while operating margin reached 72%. The company tied the jump to strong sales of high-bandwidth memory, high-capacity server dynamic random access memory modules and enterprise solid-state drives. (news.skhynix.com) High-bandwidth memory is the fast memory stacked next to AI processors so models can move data quickly. SK hynix said demand is spreading beyond training large models into “agentic AI,” where systems run repeated real-time inference in live services. (news.skhynix.com) Chip stocks have moved with that demand. Nasdaq’s PHLX Semiconductor Sector Index closed at 10,078.57 on April 23, up about 33% from March 31 and about 29% from April 1. (indexes.nasdaq.com) The backdrop is a market getting bigger because the most sought-after chips are also getting more expensive. Gartner said nonmemory semiconductors will grow to $686.9 billion in 2026, but memory alone accounts for nearly half of the industry’s projected gain. (gartner.com) Gartner’s warning is that the same price surge helping chipmakers can squeeze buyers. It said “memflation” could destroy or delay some non-AI demand into 2028, even as hyperscalers keep raising AI infrastructure spending by more than 50% in 2026. (gartner.com) For now, the market lift is coming from a narrow set of products: AI accelerators, networking silicon and memory. SK hynix said favorable pricing for both DRAM and NAND should continue as it ramps new products and tries to lock in supply. (news.skhynix.com)