The semiconductor industry is having what you might call a moment. Global chip sales hit a record $75.3 billion in November 2025, and industry watchers are now talking seriously about something that seemed almost unthinkable not long ago: a trillion-dollar year.

According to data from the Semiconductor Industry Association, worldwide chip sales jumped 29.8% year-over-year in November. That's not just growth, that's the kind of acceleration that suggests something fundamental is shifting in the market. The association represents 99% of U.S. semiconductor revenue and nearly two-thirds of global chipmakers outside the United States, so when they talk, people listen.

The November figure also marked a 3.5% increase from October's $72.7 billion, suggesting momentum isn't slowing down anytime soon.

The Trillion-Dollar Question

John Neuffer, CEO of the Semiconductor Industry Association, laid out the stakes pretty clearly: "Looking ahead, the global chip market is projected to grow substantially in 2026, reaching nearly $1 trillion in annual sales."

That would be a historic milestone for an industry that's become the backbone of everything from smartphones to data centers powering artificial intelligence applications. The surge is being driven by AI demand and accelerating adoption across tech giants worldwide, creating what looks like a genuine new growth cycle rather than just a temporary spike.

Where The Growth Is Coming From

The regional breakdown tells an interesting story. Asia Pacific and other regions saw sales explode 66.1% year-over-year, which is frankly staggering. The Americas posted solid 23.0% growth, China grew 22.9%, and Europe managed 11.1%. Japan was the outlier, declining 8.9% from a year earlier.

On a month-to-month basis, the growth was similarly broad-based. Asia Pacific jumped 5.0%, China rose 3.9%, the Americas increased 3.0%, and Europe edged up 1.2%. Japan dipped just 0.1% sequentially, suggesting even its weakness might be stabilizing.

The semiconductor sector's rising influence is hard to overstate. Nvidia Corp. (NVDA) became the first company ever to reach a $4.5 trillion market capitalization in 2025, surpassing Apple Inc. (AAPL) and Microsoft Corp. (MSFT). That's not just a big number, it's a signal about which industries are defining the modern economy.

What Analysts Are Seeing

Bank of America Securities analyst Vivek Arya came away from CES in Las Vegas feeling even more bullish about the sector. After meetings with more than a dozen management teams, he said secular, cyclical, and pricing drivers are all converging for U.S. semiconductors at the same time.

Arya said those conversations strengthened his confidence in an above-consensus forecast for 30% year-over-year growth and what he expects to be the industry's first $1 trillion revenue year. He pointed to strong demand visibility, AI-driven secular growth, and genuine pricing power as key factors.

His enthusiasm was particularly high for several names: Nvidia, Credo Technology Group Holding Ltd (CRDO), Microchip Technology Inc (MCHP), Analog Devices Inc (ADI), and Micron Technology Inc (MU) all got positive mentions based on his discussions.

The market has clearly noticed. Arya noted that the PHLX Semiconductor Sector Index has gained about 45% over the past year, dramatically outperforming the S&P 500.

The Nvidia Factor

On Nvidia specifically, Arya highlighted some eye-popping numbers. The company is projected to spend $26 billion on research and development in 2026. Even more striking, he cited demand visibility for roughly $500 billion in combined Blackwell and Rubin orders across 2025 and 2026. That's the kind of pipeline that explains why he reiterated a Buy rating and named it his top sector pick.

Nvidia shares were down 0.38% at $184.33 at the time of publication on Friday, according to market data.

The semiconductor story isn't just about one company or one technology, though. It's about an entire industry hitting its stride at a moment when the world's demand for computing power is accelerating faster than almost anyone predicted. Whether that translates into a sustained trillion-dollar run or something shorter remains to be seen, but right now the momentum is undeniable.