Morgan Stanley Forecasts Solid 60% Growth in AI Semiconductor Market in 2027

Global cloud providers continue to expand AI data centers, fueling demand for GPUs, ASICs and advanced packaging. Foundry capacity has also become a key gauge of supply-chain conditions. Morgan Stanley believes TSMC’s command of advanced processes and critical capacity means its orders and expansion plans can provide an early indication of trends in the global AI semiconductor market.

Morgan Stanley’s latest report forecasts that the global AI semiconductor market will grow 60% in 2027 from the preceding period, though it did not provide a specific market value. The report said that while supplies of components including memory remain tight, the AI supply chain faces no risk of disruption in 2027 and demand is expected to support valuations of related companies. Taiwan’s stock market also rose to fifth globally by market capitalization over the same period.