AI server demand tightens NAND flash supply

In the second quarter of 2026, steady AI server demand, especially for enterprise SSDs, tightened supply across the NAND Flash market. Suppliers used contract negotiations to lift ASPs, and combined revenue for the top five publicly listed NAND Flash brands rose 77% QoQ.

Demand from smartphones and PCs is expected to remain weak in the third quarter as higher BOM costs push up device prices. AI server demand for enterprise SSDs remains strong, while suppliers are prioritizing capital expenditure on DRAM and HBM rather than adding NAND Flash capacity. That limited capacity growth is expected to keep ASPs supportive of broader industry revenue growth.