The semiconductor industry is coming off a difficult couple of years. Sales were flat in 2022 and dropped 11% last year, according to , due to the weak demand in key industries such as smartphones and personal computers (PCs), which created a glut.

However, 2024 is predicted to be a turnaround year for the semiconductor market. Deloitte is forecasting a 13% increase in the industry's revenue this year to $588 billion. That's not surprising because sales of PCs and smartphones are expected to climb 4% in 2024. For comparison, PC sales were down 14% last year, while smartphone shipments fell 3.5%.

The good part is that both these markets could sustain their growth in the long run, especially with the emergence of artificial intelligence (AI). As it turns out, AI alone is driving a solid turnaround in the semiconductor industry, with the demand for AI chips forecast to grow at an annual pace of 38% through 2032, generating an annual revenue of $372 billion at the end of the period.

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Source Fool.com