Moore’s Law in 2025: Financial Impact, Tech Trends & Investment Insights

For decades, Moore’s Law was the unspoken backbone of the digital revolution. The idea that computer chip power would double every two years has powered innovation, wealth creation, and even government policy. But in 2025, the world is questioning whether this “law” still holds, and what its evolution means for your investments, superannuation, and the broader Australian economy.

What Is Moore’s Law—and Why Should Australians Care?

Gordon Moore, Intel’s co-founder, predicted in 1965 that the number of transistors on a microchip would double every two years, slashing costs and boosting performance. This simple observation became a self-fulfilling prophecy, fueling relentless progress in computing power. Smartphones, cloud computing, fintech platforms, and even the infrastructure behind the ASX owe their existence to this exponential growth.

• Faster, cheaper chips enabled the rise of AI, digital banking, and online trading platforms Australians use daily.

• Investment in tech firms—locally and globally—has often tracked the explosive growth predicted by Moore’s Law.

• Productivity gains, seen in everything from mining to healthcare, have roots in ever-more-capable computing.

2025: The Limits of Physics and the Rise of New Paradigms

By 2025, the relentless pace of Moore’s Law has slowed. Engineers are bumping up against physical limits—transistors are now just a handful of atoms wide. The cost of building advanced chip fabs (like those in Taiwan and the US) has soared, with single facilities now demanding investments of over $20 billion AUD.

Yet, innovation hasn’t stopped. Instead, chipmakers and startups are turning to:

• Specialised chips: AI accelerators and quantum processors are taking over tasks where traditional CPUs stall.

• Chiplet architectures: Companies are assembling “Lego-like” chips to improve efficiency without shrinking transistors further.

• Software-driven gains: Advances in machine learning and cloud computing are squeezing more value from existing hardware.

For Australians, this means the digital services you rely on will keep improving, but in more unpredictable ways. The era of predictable, linear tech gains is over—replaced by leapfrogging innovations and occasional bottlenecks.

Moore’s Law and Your Money: Investing, Super, and the New Tech Economy

Moore’s Law has always been more than just a rule for engineers—it’s shaped how we invest, save, and plan for the future. Here’s how its evolution is playing out in 2025:

• Tech sector volatility: As chip innovation becomes less predictable, so do tech company earnings. In 2024–25, Australian tech ETFs and superannuation funds saw increased volatility as markets adjusted to slower processor gains and new leaders in AI hardware.

• Opportunities in quantum and AI: Firms like Silicon Quantum Computing (Sydney) and global giants are attracting fresh capital, with the Australian government extending R&D tax incentives for quantum research and semiconductor startups in the 2025 budget.

• Digital infrastructure upgrades: The National Broadband Network (NBN) and cloud providers are investing in new chip technologies to support 5G and edge computing, opening opportunities in infrastructure funds and REITs with a tech focus.

• Consumer costs: While the days of rapidly falling prices for gadgets are slowing, Australians can expect new services (like AI-powered financial advisors and automated tax prep) to deliver value in other ways.

Moore’s Law isn’t “dead”—it’s just evolving. The smart money is on companies and funds that adapt to new computing paradigms, rather than betting on the old playbook of faster, cheaper chips every year.

Looking Ahead: How to Navigate the Post-Moore’s Law Era

For investors, business owners, and everyday Australians, the key takeaway is adaptability. The next wave of wealth creation will come from:

• Backing firms that can pivot to new tech (AI, quantum, chiplets) as old assumptions break down.

• Watching policy changes—like the Australian government’s 2025 push for sovereign chip capability and new tech R&D grants.

• Keeping a critical eye on tech sector hype versus real, sustainable gains.

Moore’s Law may no longer be the sure bet it once was, but for those willing to keep learning and adapt, the digital frontier is still wide open.