Analysts say sustained investment in AI infrastructure, optical connectivity and advanced semiconductor technologies is driving a gradual recovery in structural demand across the sector, News.az reports, citing Xinhua.
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Research firm Apex Securities noted that order pipelines remain healthy, while capacity expansion plans are progressing and customer qualification cycles are increasingly translating into revenue.
At the same time, industry forecasts suggest global semiconductor revenues could approach one trillion dollars by 2026, underpinned by demand from artificial intelligence, high-performance computing, 5G networks and next-generation devices.
However, analysts are increasingly divided over the outlook, warning that emerging risks could weigh on growth.
Kenanga Research said gains across the sector are becoming more concentrated, as AI-related demand tightens memory supply and shifts benefits towards infrastructure segments, leaving other parts of the market under pressure.
It added that while demand linked to AI continues to support investment in semiconductor equipment, it is also raising concerns about affordability and squeezing profit margins across the wider technology supply chain.
The firm has taken a more cautious stance, citing external risks including supply-chain fragility, rising costs and global memory constraints.
Separately, MBSB Research warned that geopolitical tensions, particularly in the Middle East, could dampen global semiconductor demand.
The mixed outlook highlights a sector balancing strong structural drivers against growing uncertainty, as companies navigate both expanding opportunities and mounting external pressures.
