Bank of America Raises Global Chip Sales Forecast to $1 Trillion by 2027 on AI Boom

Bank of America has significantly upgraded its projection for global semiconductor sales, now anticipating a $1 trillion market by 2027—up from a prior estimate of $860 billion. The revision stems from explosive demand for AI-related chips, particularly high-bandwidth memory (HBM), DRAM, and NAND, alongside data center components. Consumer electronics and automotive sectors show weaker momentum, but not enough to derail the overarching trend.

The bank’s revised forecasts predict $745 billion in 2025, $870 billion in 2026, and $971 billion in 2027, reflecting 3%-6% increases over earlier models. Even excluding memory chips, sales are expected to hit $538 billion in 2025, underscoring the breadth of the expansion. Analysts emphasize this cycle’s durability, citing sustained corporate investment in AI infrastructure as a structural driver.

Capital expenditures for chip manufacturing equipment are also rising, with projections now at $118 billion (2025), $128 billion (2026), and $138 billion (2027). While growth rates may moderate post-2025, the absolute numbers reinforce the industry’s bullish trajectory.