DEFINITION of 'Moore's Law'
An observation made by Intel cofounder Gordon Moore in 1965. He noticed that the number of transistors per square inch on integrated circuits had doubled every year since their invention. Moore's law predicts that this trend will continue into the foreseeable future.
Although the pace has slowed, the number of transistors per square inch has since doubled approximately every 18 months. This is used as the current definition of Moore's law.
INVESTOPEDIA EXPLAINS 'Moore's Law'
Because Moore's law suggests exponential growth, it is unlikely to continue indefinitely. Most experts expect Moore's law to hold for another two decades. Some studies have shown physical limitations could be reached by 2017.
RELATED TERMS

8020 Rule
A rule of thumb that states that 80% of outcomes can be attributed ... 
Critical Mass
A very important or crucial stage in a company's development, ... 
LongTerm Growth  LTG
An investing strategy or concept where a security will appreciate ... 
New Economy
A buzzword describing new, highgrowth industries that are on ... 
Organic Growth
The growth rate that a company can achieve by increasing output ... 
Growth Rates
The amount of increase that a specific variable has gained within ...
RELATED FAQS

Are all fixed costs considered sunk costs?
In accounting, finance and economics, all sunk costs are fixed costs. However, not all fixed costs are considered to be sunk. ... Read Full Answer >> 
What is the variance/covariance matrix or parametric method in Value at Risk (VaR)?
The parametric method, also known as the variancecovariance method, is a risk management technique for calculating the value ... Read Full Answer >> 
What is backtesting in Value at Risk (VaR)?
The value at risk is a statistical risk management technique that monitors and quantifies the risk level associated with ... Read Full Answer >> 
How do I discount Free Cash Flow to the Firm (FCFF)?
Discounted free cash flow for the firm (FCFF) should be equal to all of the cash inflows and outflows, adjusted to present ... Read Full Answer >> 
What is RiskMetrics in Value at Risk (VaR)?
RiskMetrics is a methodology that contains techniques and data sets used to calculate the value at risk (VaR) of a portfolio ... Read Full Answer >> 
What are some of the advantages and disadvantages of DuPont Analysis?
DuPont analysis is a potentially helpful tool for analysis that investors can use to make more informed choices regarding ... Read Full Answer >>
Related Articles

Trading Strategies
Riding The Momentum Investing Wave
Buy high and sell higher. Find out if you could surf these risky waters. 
Markets
Is Growth Always A Good Thing?
Getting big quickly looks good, but companies can get into trouble when they do it too fast. Find out how to spot this trouble. 
Markets
Great Company Or Growing Industry?
Look at the big picture when choosing a company  what you see may really be a stage in its industry's growth. 
Investing Basics
The Christmas Saints Of Wall Street
Learn how some of world's richest people spread holiday cheer yearround. 
Trading Strategies
Einstein's Stock Tips: Gravity and Growth
Can applying the theory of relativity help you pick a stock? Find out more here. 
Economics
Understanding the Fisher Effect
The Fisher effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate. 
Fundamental Analysis
Explaining the Geometric Mean
The average of a set of products, the calculation of which is commonly used to determine the performance results of an investment or portfolio. 
Economics
International Financial Reporting Standards (IFRS)
International Financial Reporting Standards are accounting rules and guidelines governing the reporting of different types of accounting transactions. 
Economics
Understanding Economic Order Quantity
Economic order quantity is an inventoryrelated equation that determines the optimum order quantity that a company should hold in its inventory. 
Economics
What is Net Margin?
The ratio of net profits to revenues for a company that shows how much of each dollar earned by the company is translated into profits.