Semiconductor Cycle to Extend into 2027, Nvidia Shares Up 109%
A leading research firm forecasts the semiconductor upcycle could extend through 2027 as shipments recover above trend, positioning Nvidia—whose shares rose 109% over the past year—to capitalize on sustained demand. Concurrently, AI hardware players saw dramatic gains, with FormFactor jumping 505% and Victory Giant surging 60% in its $2.6 billion IPO, underscoring robust supply-chain momentum likely to bolster Nvidia's growth.
1. Semiconductor Cycle Outlook
Shipments above trend suggest the current semiconductor upcycle may run through at least 2027, with inventory days falling to about 79 from a five-year average of 75. Quarterly shipments dipped 2.1% but rose 3.5% year-over-year as pricing firms, prompting forecasts of 22% ex-memory revenue growth in 2026 and spotlighting Nvidia’s leadership in the recovery.
2. FormFactor’s Stock Performance
FormFactor’s share price has climbed 505% over the past 12 months, including a 156% gain in 2026 alone, outpacing Nvidia’s 109% rise over the same period. The company’s $11 billion market capitalization and 216 times forward earnings multiple reflect sky-high AI-driven investor enthusiasm for device-testing equipment.
3. Victory Giant’s AI IPO
Victory Giant Technology raised $2.6 billion in its Hong Kong debut, with shares jumping 60% to HK$336.20 from a HK$209.88 launch price and drawing $997 million from 37 cornerstone investors. The PCB supplier reported 19.3 billion yuan in revenue last year, expects 70% growth by 2026, and plans a $30 billion capacity expansion across Asia and North America to meet AI infrastructure demand.