Goldman Sachs: AI Semiconductor Revenue to Exceed $700B by End of 2026 — 49% Growth Forecast

Goldman Sachs' latest report projects that AI-driven demand will push semiconductor revenues to significant new highs, with AI-related hardware revenues expected to exceed $700 billion by Q4 2026. The overall semiconductor sector is forecast to grow 49% from current levels. AI-related investment in the US now stands at $325 billion (1.1% of GDP) above its 2022 level. AI-related hardware shipments from Taiwan remained elevated at $44.6 billion in February. US firm AI adoption stands at 18.9%, expected to rise to 22.3% in six months. Information services, professional services, education, and finance/insurance lead adoption. Establishments with over 250 employees lead at 35.3% adoption. Productivity gains are notable: academic studies show a 23% average uplift, while company anecdotes suggest ~33% efficiency gains. Direct AI-related layoffs remain limited at 4,600 in February, while data center construction jobs have increased by 212,000 since 2022.