The 25-year-old needed just 88 minutes to complete an emphatic 6-2 6-2 6-1 win over the Spaniard and book his place in the Melbourne final for the third consecutive year.
"I played incredible tennis," said Djokovic. "I felt very comfortable and very confident from the start. This is definitely one of the best performances I ever had in my career.
"I know [Ferrer is] mentally very strong and he bounces back really fast if you give him opportunities. I don't expect myself always to play this well but hopefully I can maintain my levels for the final.
"I know this has been my most successful slam, I love this court."
Djokovic already has three Australian Open titles to his name, having lifted the trophy in 2008, 2011 and 2012.