- Semiconductor Revenue to Grow 64% in 2026
- DRAM Prices to Increase by 125% in 2026 and Storage Crisis to Extend into 2027
Gartner forecasts semiconductor revenue will grow 64% in 2026, with memory revenue expected to increase threefold amid memflation (see Table 1). Gartner analysts said that memflation is profound, but it is not perennial. Gartner estimates DRAM and NAND flash annual prices in 2026 will increase by 125% and 234%, respectively, and any meaningful pricing relief is not expected until late 2027.
Table 1. Semiconductor Revenue Forecast, Worldwide, 2025-2027 (Billions in U.S. Dollars)
| 2025 | 2026 | 2027 | |
| Memory | 216.3 | 633.3 | 748.1 |
| Nonmemory | 589.0 | 686.9 | 806.4 |
| Total Market | 805.3 | 1,320.2 | 1,554.5 |
Source: Gartner (April 2026)
“Memflation will destroy, or at least delay, non-AI demand into 2028, to varying degrees depending on the application,” – Rajeev Rajput, Senior Principal Analyst at Gartner
“Memflation will destroy, or at least delay, non-AI demand into 2028, to varying degrees depending on the application,” said Rajput. “Technology suppliers should prepare for higher prices during the first half of 2026, followed by persistent but moderating price increases throughout the rest of the year. CIOs and IT leaders should be cautious about signing supply agreements with unfavourable pricing terms that extend beyond 2027.”
