This article first appeared on GuruFocus.
The global semiconductor market is projected to grow more than 25% in 2026, putting the industry close to the $1 trillion mark, according to a Tuesday report from the World Semiconductor Trade Statistics.
WSTS now sees the market reaching $975 billion in 2026, following a forecast 22% increase in 2025 to about $772 billion. That is up roughly 7 percentage points from its prior estimate, driven by stronger-than-expected third-quarter results.
Growth is expected across all regions and major product categories, with Logic chips projected to rise about 37% and Memory up around 28% year over year. Other segments are also seen improving, though at a slower pace, including Sensors up about 10%, Microprocessors 8%, Analog 7%, and Optoelectronics roughly 4%.
Regionally, the Americas and Asia Pacific are forecast to expand about 25% to 30%, reflecting strong AI and data-center demand. Europe is expected to grow about 6%, while Japan may slip around 4%.
Chipmakers such as NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), Qualcomm (NASDAQ:QCOM), Micron (MU), Marvell (NASDAQ:MRVL), Taiwan Semiconductor Manufacturing (NYSE:TSM), ASML (ASML), and Intel (NASDAQ:INTC) remain closely tied to these trends.