Global Semiconductor Sales Expected to Reach $1 Trillion by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy NVDA?
Source: seekingalpha
- Significant Sales Growth: According to the Semiconductor Industry Association, global semiconductor sales surged 25.6% year-over-year to $791.7 billion in 2025, with projections indicating a rise to $1 trillion by 2026, highlighting robust market demand and industry recovery.
- Logic Products Lead: Sales of logic products increased by 39.9% to $301.9 billion in 2025, making it the largest product category by sales, reflecting strong demand driven by high-performance computing and AI applications.
- Memory Products Surge: In 2024, memory product sales rose 34.8% to $223.1 billion, primarily fueled by demand from data centers and AI infrastructure, further solidifying the market position of memory manufacturers.
- Quarterly Sales Spike: Fourth-quarter 2025 sales soared 37.1% year-over-year to $236.6 billion, with a 13.6% increase compared to the third quarter, demonstrating sustained demand for semiconductor products and a strong economic rebound.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Fundraising: The IPO raised $902 million, reflecting strong investor interest in Chinese AI and semiconductor firms, particularly as the public tranche was oversubscribed by more than 700 times and the international offering was nearly 38 times covered.
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- Evolving Policy Landscape: As the Chinese government intensifies efforts for self-sufficiency in advanced chips, the recent approval for Nvidia's H200 imports under specific conditions highlights the uncertainty in policy that could impact market dynamics.
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- Economic Data Focus: Key economic releases, including the nonfarm payrolls report and consumer price index, are set to be released this week, which could influence the Fed's rate decisions, with markets pricing in the first rate cut potentially in June.
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- Market Rebound: Tech stocks and the broader market rebounded on Friday, with Nvidia shares rising nearly 8%, reflecting investor confidence in the recovery of the chip industry, although Nvidia's stock remains down 11% from its peak on November 3, indicating market volatility.
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- Regulatory Challenges: Nvidia is awaiting approval for the sale of its H200 chips in China; while Beijing is close to approving imports, the U.S. is considering additional restrictions, and this complex diplomatic situation may impact Nvidia's market performance and stock price fluctuations.
See More
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- Earnings Drive: The continuous growth of corporate earnings among Dow components is a critical factor driving stock prices upward, and if this trend persists, the index is expected to keep rising, reflecting strong economic fundamentals.
- Macroeconomic Factors: While macroeconomic indicators such as inflation, interest rates, and GDP growth can impact the market, there are currently no signs of dramatic negative swings in these metrics, maintaining an optimistic market sentiment.
- Future Outlook: Despite the risks of an AI bubble burst, the Dow's composition has a low proportion of tech stocks, with major components like Goldman Sachs and Caterpillar likely to continue supporting the index, prompting investors to prepare for a potential rise to 60,000.
See More
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- GPU Dominance: Nvidia's GPUs account for over 90% of the market in AI data centers, ensuring the company's leading position in technological innovation with superior computing capabilities and a gross margin of 70%.
- Innovation Cycle Risks: While Nvidia's strategy of launching a new GPU annually aims to maintain its competitive edge, this rapid innovation could lead to a depreciation of older chips by 30% to 50%, potentially affecting customer upgrade decisions and future demand.
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See More
