Navigating Rates

Global tech: 5 themes for 2026

2025 may well be looked back upon as a historic inflection point for tech, and artificial intelligence (AI) in particular, with breakthroughs in model capabilities, surging adoption, and unprecedented capital investment. AI has become the key catalyst reshaping tech and even broader equity markets. Meanwhile, many of the trends we looked forward to in early 2025 – including the growth of high-speed networking, parallel opportunities in application specific chips alongside GPUs, and a growing focus on data hygiene – continue to shape markets.

Yet as demand for computing resources and power surge in parallel, the stage is set for a new wave of structural trends that will shape markets beyond the traditional cyclical patterns. 2026 is thus poised to be consequential, with several themes rising to the forefront. In this respect, we see the most consequential as the continuation of the memory supercycle, the escalation of semiconductor capex into a full supercycle, intensifying data-center power requirements, the emergence of enterprise AI adoption, and the rebound of analog semiconductors.

Together, these dynamics illustrate how AI is no longer just a tech trend, but the force currently driving the reorganization of the entire semiconductor and tech ecosystems – and the landscape for tech investors.

Cycles and supercycles

The semiconductor sector enters 2026 amid overlapping supercycles, each driven by the unprecedented growth of AI. At the heart of this shift is the memory supercycle, where the bottleneck has moved from computing speed to memory bandwidth. High‑Bandwidth Memory (HBM) has emerged as a critical constraint, with capacity effectively sold out through 2026 as AI workloads strain the limits of data movement rather than arithmetic performance. As a result, many analysts now expect a two‑tier memory economy, with AI infrastructure booming as PCs and smartphones face supply pressure, possibly lengthening the duration of the current cycle.

Memory capacity comparison: consumer devices vs NVIDIA AI GPUs

Source: Bloomberg, February 2026

Running in parallel is the semiconductor capex supercycle, fueled by the same surge in AI demand, alongside geopolitical changes and related efforts to regionalize production. China is pursuing self‑sufficiency by scaling domestic foundry capacity, while the CHIPS Act in the US continues to offer incentives to reshape global production. The broader capex environment will thus remain elevated as manufacturers race to satisfy AI‑driven demand.

Scaling amid power constraints

By 2030, global data center electricity consumption is expected to more than double, with AI‑optimized facilities quadrupling power use; several regions are already facing grid stress and substation limitations. In the US, for example, data centers could consume nearly 9% of national electricity by 2030, driven largely by AI acceleration. As a result, the industry is shifting toward on‑site power generation, with forecasts suggesting that by 2030, about 30% of data centers will rely partially on behind‑the‑meter sources – for instance, natural gas, batteries, solar, and even small nuclear reactors.

In 2026, the hyperscalers are expected to build newer AI‑first facilities, as retrofitting older buildings becomes increasingly insufficient for GPU‑intensive workloads. Power constraints will remain the limiting factor for capacity expansion, influencing site selection, permitting, and the economics of the AI infrastructure rollout.

Mainstreaming enterprise AI

2026 will be marked by enterprise AI moving from experimentation to full‑scale deployment. With worker access to AI up 50%, many organizations are finally operationalizing the groundwork laid over recent years. Indeed, most firms are now moving beyond pilots and embedding AI directly into workflows, decision‑making, and industry‑specific applications.

While challenges remain – data quality is still uneven, and talent gaps persist in some sectors, for example – companies are currently focusing on AI fluency and governance, while also adapting models to local regulatory and infrastructure contexts; we thus expect to see corporates scaling generative in 2026. Budgets are rising, and the winners will be those who successfully align data governance, workflow redesign, and talent upskilling to fully harness AI’s potential.

Analog semis – recovery and acceleration

After a downturn in automotive and consumer markets in 2024, analog semiconductors began to rebound in 2025. As AI‑driven demand lifts the broader semiconductor landscape, analogs – vital for functions such as power management, sensing, signal conditioning, and vehicle electronics – are regaining momentum. The market is expected to grow from about $99 billion in 2026 toward $154 billion by 2034, supported by EV adoption, industrial automation, and next‑generation consumer devices.

Meanwhile, the rise of energy‑hungry AI data centers is also boosting demand for high‑efficiency analog power components. Asia‑Pacific remains the largest market here, with North America forecast to grow fastest through the early 2030s. AI is thus also further reshaping analog workflows and enhancing innovation across this segment.

Conclusion

The shifts underway across the semiconductor and AI ecosystems point to a market environment defined less by linear growth and more by overlapping supercycles, structural bottlenecks, and rapidly evolving corporate adoption patterns. For investors, we believe these dynamics are creating opportunities, as certain sectors will continue to enjoy outsized growth in 2026 and beyond.

However, these trends are far from uniform, and an active approach is essential to successfully navigate volatility, valuation extremes, and shifting fundamentals. The coming year will reward investors who can distinguish enduring structural drivers from short‑term narrative momentum, positioning portfolios to participate in the next phase of AI‑driven transformation.

Global tech equity ecosystem
TAIWAN
Corrina Xiao, Head of Mutual Fund Inv. – TW Equity
Leonne Chen, Senior Analyst
Jimmy Liu, Analyst
KOREA
ChungJun Yun, PM
JAPAN & CHINA
Stephen Chow, Senior Analyst/PM
Mandy Shek, Senior Analyst

The 5 tech themes for 2026 have been compiled by the Global Tech Equity Ecosystem at Allianz Global Investors.

Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested.

Past performance does not predict future returns. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor’s local currency.

This is for information only and not to be construed as a solicitation or an invitation to make an offer to buy or sell any securities. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. The data used is derived from various sources and assumed to be accurate and reliable at the time of publication. but it has not been independently verified; its accuracy or completeness is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use, unless caused by gross negligence or willful misconduct. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted, except for the case of explicit permission by Allianz Global Investors.

This material has not been reviewed by any regulatory authorities.

This document is being distributed by the following Allianz Global Investors companies: In Australia, this material is presented by Allianz Global Investors Asia Pacific Limited (“AllianzGI AP”) and is intended for the use of investment consultants and other institutional/professional investors only, and is not directed to the public or individual retail investors. AllianzGI AP is not licensed to provide financial services to retail clients in Australia. AllianzGI AP is exempt from the requirement to hold an Australian Foreign Financial Service License under the Corporations Act 2001 (Cth) pursuant to ASIC Class Order (CO 03/1103) with respect to the provision of financial services to wholesale clients only. AllianzGI AP is licensed and regulated by Hong Kong Securities and Futures Commission under Hong Kong laws, which differ from Australian laws; in the European Union, by Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungs-aufsicht (BaFin) and is authorized and regulated in South Africa by the Financial Sector Conduct Authority; in the UK, by Allianz Global Investors (UK) Ltd. company number 11516839, authorised and regulated by the Financial Conduct Authority (FCA); in Switzerland, by Allianz Global Investors (Schweiz) AG, authorised by the Swiss financial markets regulator (FINMA); in HK, by Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; in Singapore, by Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; in Japan, by Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424], Member of Japan Investment Advisers Association, the Investment Trust Association, Japan and Type II Financial Instruments Firms Association; In mainland China, it is for Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations and is for information purpose only. in Taiwan, by Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan; and in Indonesia, by PT. Allianz Global Investors Asset Management Indonesia licensed by Indonesia Financial Services Authority (OJK).

Admaster 5306217

Allianz Global Investors

You are leaving this website and being re-directed to the below website outside Singapore. This does not imply any approval or endorsement of the information by Allianz Global Investors Singapore Limited contained in the redirected website nor does Allianz Global Investors Singapore Limited accept any responsibility or liability in connection with this hyperlink and the information contained herein. Please keep in mind that the redirected website may contains funds and strategies not authorized for offering to the public of Singapore. Besides, please also take note on the redirected website’s terms and conditions, privacy and security policies, or other legal information. By clicking “Continue”, you confirm you acknowledge the details mentioned above and would like to continue accessing the redirected website. Please click “Stay here” if you have any concerns.

Welcome to Allianz Global Investors

Select your role
  • Individual Investor
  • Intermediaries
  • Institutional Investor
  • It contains legal and regulatory notices relevant to the information contained on this website. By accessing this website, you agree to be bound by the following terms and conditions. Please discontinue your access to this website immediately if you do not accept any of these terms or conditions.


    Investments

    The content of this website is for informational purposes only and does not have any regard to the specific investment objectives, financial situation or particular needs of any particular person.

    Advice should be sought from a financial adviser regarding the suitability of any fund before purchasing units in the fund. In the event that you choose not to seek advice from a financial adviser, you should consider whether the fund is suitable for you. Prices of funds and income from them may fall or rise and cannot be guaranteed.

    Past performance of any fund or manager/ sub-manager of the fund are not necessarily indicative of future performance.

    Prospectuses for funds registered with the Monetary Authority of Singapore under the Authorised Scheme and Recognised Scheme are available, and may be obtained from Allianz Global Investors Singapore Limited or its appointed distributors. Investors should read the prospectuses before investing in such funds.


    No Reliance

    Although Allianz Global Investors Singapore Limited has taken all reasonable care that the information contained within the website is accurate at the time of publication, no representation or warranty (including liability towards third parties), expressed or implied, is made as to its accuracy, reliability or completeness by Allianz Global Investors Singapore Limited or its contractual partners.

    Opinions and any other contents on this website are provided by Allianz Global Investors Singapore Limited for personal use and informational purposes only and are subject to change without notice.

    Nothing contained in the website constitutes investment, legal, tax or other advice nor is to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision.


    No Warranty

    The information and opinions contained on the website are provided without any warranty of any kind, either expressed or implied, to the fullest extent pursuant to applicable law. Allianz Global Investors Singapore Limited further assumes no responsibility for, and makes no warranties that, functions contained on the website will be uninterrupted or error-free, that defects will be corrected, or that the website or the servers that make it available will be free of viruses or other harmful components.


    Liability Waiver

    Under no circumstances, including , but not limited to, negligence, shall Allianz Global Investors Singapore Limited be liable for any special or consequential damages that result from the access or use of, or the inability to access or use, the materials at the website.


    Linked Sites

    Allianz Global Investors Singapore Limited has not reviewed any websites which link to this website, and is not responsible for the contents of off-site pages linked to from this website or any other websites linked to this website. Following links to any off-site pages or other websites shall be entirely at your own risk.

    The only exception to the above is that Allianz Global Investors Singapore Limited will ensure that all our electronic prospectuses comply with the requirements for electronic prospectuses set out in the Guidelines on Offer of Securities made through the Internet issued by the Monetary Authority of Singapore.


    Copyright

    Copyright to this website is owned by Allianz Global Investors Singapore Limited. The copyrights of third parties are reserved. You may download or print a hard copy of individual pages and/or sections of the website, provided that you do not remove any copyright or other proprietary notices. Any downloading or other copying from the website will not transfer title of any software or material to you. You may not reproduce (in whole or part), transmit (by electronic means or otherwise), modify, hyperlink or use for any public or commercial purpose the website without the prior permission of Allianz Global Investors Singapore Limited.

    All trademarks, service marks and logos on this website are the property of Allianz Global Investors Singapore Limited and other third party proprietors where applicable. Nothing on this website shall be construed as granting any license or right to use any image, trademark, service mark or logo, and Allianz Global Investors Singapore Limited will enforce such rights to the full extent of applicable law.


    Money Laundering

    As a result of money laundering and other regulations, additional documentation for identification purposes may be required when you make your investment.


    Governing Law and Jurisdiction

    These Terms and Conditions governing Allianz Global Investors Singapore Limited's website shall be governed by and construed in accordance with the laws of the Republic of Singapore. By accessing this website's online services, you agree that in relation to any legal action or proceedings arising out of or in connection with these said terms and conditions, you hereby irrevocably submit to the jurisdiction of the courts of the Republic of Singapore.

    Approved for issue by Allianz Global Investors Singapore Limited, 79 Robinson Road, #09-03, Singapore 068897. Company Regn. No. 199907169Z.

    You may face minimal or no returns or suffer total loss of their investments if both the guarantor and the note issuer default.

     

Please indicate you have read and understood the Important Notice.