Omdia, the technology research and advisory group, has once again raised its 2026 semiconductor revenue forecast amid continuing artificial intelligence demand.

The forecast for 2026 has risen to a 94.1% increase year-over-year, and comes just three months after Omdia forecasted that a figure of 62.7% would be achieved — with that prior number also being a revised figure from what was initially expected.

The latest bump in revenue expectation has been driven by substantial growth in DRAM and NAND — types of memory utilised for AI workloads — as AI demand continues to outpace global supply.

In fact, AI demand has exceeded the industry’s current ability to produce and package chips to such an extent that bottlenecks across high bandwidth memory (HBM), advanced packaging, node capacity, and more are expected to persist until at least 2027.

Further, while DRAM suppliers are prioritising high bandwidth memory and other high-margin products, commodity memory pricing and lead times are becoming incredibly volatile.

As semiconductor revenue growth becomes more concentrated in AI-related applications, other markets are facing significant cost pressure, too.

Smartphones, PCs, and consumer electronics are experiencing higher component costs, while automotive and industrial electronics markets must also compete with AI demand for packaging and memory circuits.

Recommended reading

• Majority of Privacy Incidents to Stem from AI-generated Inferences by 2029
• AI Bias Locking Women Out of Tech Growth
• Tech CEOs Defend Open-Weight AI Models to Lawmakers
• Anthropic Says Claude Models Hacked Into Three Companies In Security Tests

Commenting on the latest forecast and the context behind it, Myson Robles-Bruce, a Senior Principal Analyst at Omdia, said: “From mid-2026 through early 2027, the semiconductor market will be defined by relentless AI demand.

“Capacity will remain constrained, advanced nodes heavily utilised, and memory and advanced packaging costs will continue to rise.

“Investment tied directly to AI infrastructure will drive record silicon consumption, while non-AI markets continue to face supply constraints.”