Gartner’s report reveals that high-bandwidth memory (HBM) is growing in importance in AI technology, with revenues expected to reach $12.3 billion in 2024 and $21 billion in 2025. By 2026, more than 40% of HBM chips are expected to support AI tasks, highlighting its growing role in advanced AI applications.

THE global semiconductor market is poised for significant growth, with The latest Gartner report predict a 14% increase in turnover, reaching $717 billion by 2025. Released on October 28, 2024, the report states that after experiencing a recession in 2023, the industry has rebounded strongly, mainly driven by growing demand for AI-related semiconductors and increased electronic production . This year, semiconductor revenues are expected to reach 630 billion dollarsreflecting an impressive Growth of 18.8% of the previous year. Despite this positive trend, the automotive and industrial sectors continue to face weak demand, as noted by Rajeev Rajput, senior principal analyst at Gartner.

In particular, the memory markets, notably DRACHMA And NAND are expected to witness substantial growth that will contribute significantly to the overall revenues of the semiconductor industry. The memory segment is expected to grow by 20.5% in 2025reaching $196.3 billion. The continued shortage in 2024 is expected to drive NAND prices up by 60% this year, although a slight price drop of 3% is expected in 2025 as supply stabilizes. Meanwhile, DRAM revenue is also expected to increase due to growing demand for advanced technologies such as Double Data Rate 5 (DDR5) memory and High Bandwidth Memory (HBM). This segment should generate $115.6 billion in income in 2025an increase from $90.1 billion in 2024.

Advances in AI technologies, especially with graphics processing units (GPUs)continue to reshape the semiconductor landscape. According to Gartnerrevenue from GPUs used in training AI models expected to reach $51 billionmarking a Increase of 27% in 2025. The growing demand for HBMvital for next-generation AI servers, has led to substantial investments in production. HBM’s revenues are expected to increase by 70% in 2025totalizing $21 billion. By 2026, more than 40% of HBM chips are expected to support AI inference workloads, highlighting the growing importance of semiconductors in facilitating advanced AI applications across various industries.