Needham increased its 2026 WFE estimate to $145.3 billion from $130.1 billion, and its 2027 estimate to $201.0 billion from $149.6 billion, driven by accelerating DRAM and NAND spending alongside faster-than-expected growth in leading-edge foundry/logic. The firm introduced a new 2028 WFE forecast at $191.6 billion, reflecting a pause in growth after two years of expansion, with DRAM WFE for 2027 now modeled at $84.1 billion, a 72% increase from the previous $49.0 billion estimate.
WFE spending is now projected to surge through 2027, driven by AI demand for DRAM and leading-edge logic, but a growth pause is expected in 2028.