What Is Moore's Law
In 1965, Intel co-founder Gordon Moore predicted that the number of transistors on a chip would double roughly every two years. This held remarkably true for about 50 years, driving exponential improvements in computing power and cost reduction. Doubling every 2 years means 32x in 10 years and about 1,000x in 20 years.
The Math Behind Moore's Law and Compounding
Moore's Law equates to roughly 41% annual compound growth. Investment compounding at 5-7% is far slower, but the mathematical structure is identical: both are exponential functions where growth is proportional to the current amount. Smartphone storage growing from 16GB to 1TB (64x) in 10 years is a direct result of this principle.
What It Means for Investors
Moore's Law has been the engine behind technology sector growth for decades. Each doubling of chip capability enables new services and markets. While physical limits may slow this trend, the key takeaway for investors is recognizing exponential growth patterns and applying the same principle (compound interest) to personal wealth building. A technology trends book explores exponential growth across industries.