AI semiconductors market growth reshapes chip industry

Worldwide semiconductor revenue reached USD 793 billion in 2025, according to preliminary results. The growth reflects a sharp rise in demand for chips supporting artificial intelligence workloads, particularly processors, high-bandwidth memory, and networking components.

AI semiconductors accounted for nearly one-third of total semiconductor sales during the year, highlighting their expanding role in the overall market. This share is expected to rise further as spending on AI infrastructure continues to accelerate.

AI infrastructure fuels semiconductor demand

The expansion of AI infrastructure is generating sustained demand for specialised components. Processors designed for AI workloads, high-bandwidth memory used in AI servers, and networking chips have emerged as the primary growth drivers.

AI infrastructure spending is forecast to exceed USD 1.3 trillion in 2026, reinforcing expectations that AI semiconductors market growth will remain a defining trend for the industry.

In 2025, AI processors generated more than USD 200 billion in sales. High-bandwidth memory represented 23 percent of the DRAM market, surpassing USD 30 billion in revenue, reflecting its increasing importance in AI server deployments.

Shifts among top semiconductor vendors

AI-led demand is also reshaping the competitive landscape. Among the top 10 semiconductor vendors, five positions changed compared to the previous year.

NVIDIA extended its lead over Samsung by USD 53 billion in 2025 and became the first semiconductor vendor to exceed USD 100 billion in annual sales. The company contributed more than 35 percent of total industry growth during the year.

Samsung Electronics retained the second position, with semiconductor revenue of USD 73 billion. Growth in memory revenue offset a decline in non-memory segments.

SK Hynix moved into third place, posting USD 61 billion in revenue, supported by strong demand for high-bandwidth memory used in AI servers.

Intel continued to lose market share, ending 2025 with a six percent share of the global semiconductor market, down significantly from its position in 2021.

AI semiconductors gain long-term dominance

The data suggests that AI semiconductors market growth is not a short-term cycle. AI-related chips are projected to represent more than half of total semiconductor sales by 2029, underscoring their central role in future industry dynamics.

As AI workloads scale across data centres and enterprise environments, demand for specialised processors, advanced memory, and high-speed networking is expected to remain strong.

Market outlook

The semiconductor industry is increasingly being shaped by AI-driven requirements rather than traditional computing demand. Revenue concentration among AI-focused vendors, shifts in market share, and sustained infrastructure investment point to a structural transformation in how the global chip market evolves.