26 October 2026 1 minute read

Huge demand for the processing chips and memory that power artificial intelligence has driven semiconductor valuations sharply higher.

When ChatGPT 3.5 came out in November 2022, it changed everything for artificial intelligence (AI). It created huge demand for the processing chips that run AI. Since then, the world’s 10 largest semiconductor companies have grown in market value by more than 680 per cent, supported by average year-on-year earnings growth of over 330 per cent in Q3 2026. As AI models get bigger and smarter, people are focusing not just on how fast they work but also on the memory. The latter enables the models to process and retrieve vast amounts of data quickly. Because of this change, Samsung Electronics, SK Hynix and Micron Technology have delivered average year-on-year quarterly revenue growth of around 250 per cent. Despite the sector’s recent pullback, the scale of earnings and valuation growth highlights the continued investment behind the infrastructure powering AI.

Figure 1: AI boom ignites semiconductor valuations¹

Source: Aviva Investors, Bloomberg as at 19 October 2026.

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Growth in market value of the world’s 10 largest semiconductor companies since the release of ChatGPT 3.5 in November 2022

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Average year-on-year earnings growth of the world’s 10 largest semiconductor companies in Q3 2026

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Average year-on-year quarterly revenue growth of Samsung Electronics, SK Hynix and Micron Technology

Past performance is not a reliable indicator of future results.

References

  1. The companies mentioned are for illustrative purposes only and do not constitute an investment recommendation.
  2. Latest quarterly valuations available as at Q2 2026.

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