Semiconductor Industry Poised for Massive Growth Amid Agentic AI Boom

Nvidia's CEO Jensen Huang has predicted that the semiconductor industry will need to grow to $7.9 trillion in the next decade to support the development of agentic AI, self-directed systems that can autonomously execute tasks and help corporations achieve significant productivity gains.

Huang believes this growth is necessary because billions of AI agents will be needed to power these systems, and each agent requires a vast amount of processing power. Currently, the semiconductor industry is valued at around $791.7 billion, so this represents a tenfold increase over the next decade.

Nvidia itself stands to benefit from this growth, as it is the leading provider of graphics processing units (GPUs) and has already seen significant demand for its products in the first quarter of its fiscal year 2027. The company's revenue jumped by 85% year-over-year to $81.6 billion, with gross margins increasing to 74.9%.

Micron Technology is another stock that could benefit from the growth of the semiconductor industry, as it provides memory and storage chips used in everything from smartphones to data centers. The company's data center business has been a major driver of its growth, and its financial results have exploded in recent quarters.