Goldman Sachs Raises Semiconductor Equipment Cycle Outlook to 2028

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Goldman Sachs has revised its semiconductor equipment cycle forecast to 2028, citing robust demand driven by AI. Global WFE spending is projected to reach $150 billion in 2026, $218 billion in 2027, and $281 billion in 2028. DRAM and HBM are key growth areas, with supply constraints expected to persist through 2028. On-chain data shows ongoing capital investment in memory manufacturing. Global crypto policy remains a key watchpoint for sector expansion.
ME AI reports that, amid the upcoming NVIDIA earnings release and increased volatility in the AI sector, Goldman Sachs continues to raise its expectations for the semiconductor equipment cycle. The firm believes that AI demand is extending this wafer fabrication equipment spending cycle, with global WFE spending projected to expand through 2026 to 2028. Goldman Sachs forecasts global wafer fab equipment spending to reach $150 billion in 2026, rise to $218 billion in 2027, and further increase to $281 billion in 2028, representing year-over-year growth rates of 36%, 45%, and 29% respectively. Key drivers include expansion in DRAM, HBM, and advanced-node foundry capacity. The report also notes that DRAM supply constraints may persist through 2028, keeping capital expenditures by memory manufacturers at elevated levels. (Source: BlockBeats)
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