NAND Flash prices surged in Q2 2024, fueled by demand for high-capacity storage, particularly from AI and server markets, according to a recent TrendForce report.
While server inventory adjustments neared completion, demand surged. However, high inventory levels among PC and smartphone buyers led to a 1 percent quarter-on-quarter (QoQ) decline in NAND Flash bit shipments. Despite this, the average selling price (ASP) climbed by 15 percent, pushing overall revenue to $16.796 billion, marking a 14.2 percent increase from the previous quarter.
All major NAND Flash suppliers saw profitability return in the second quarter and are expanding production capacity in Q3 to meet growing demand from AI and server markets. However, lower-than-expected PC and smartphone sales in the first half of the year may limit shipment growth.
TrendForce predicts a 5 percent to 10 percent QoQ rise in ASP for NAND Flash products in Q3, though bit shipments could fall by at least 5 percent due to a weaker-than-expected peak season. Revenue is expected to remain stable overall.
Samsung and SK Group See Strong Enterprise SSD Demand
Samsung’s Q2 revenue hit $6.2 billion, up 14.8 percent QoQ, driven by a 20 percent rise in ASP for enterprise storage products, despite a minor dip in NAND Flash bit shipments. The company expects Q3 shipments to surpass market averages, with further revenue growth due to higher enterprise SSD prices.
SK Group (SK Hynix and Solidigm), the second-largest NAND Flash supplier, also benefited from AI-driven demand, particularly for enterprise SSDs. Though its bit shipments dropped slightly due to weaker PC and smartphone sales, a 16 percent increase in ASP led to a 13.6 percent rise in revenue, totaling $3.716 billion.
Other Key Players Experience Revenue Boosts
Kioxia, the third-largest supplier, saw Q2 revenue grow 27.7 percent to $2.326 billion, thanks to a 12 percent rise in bit shipments and a 20 percent increase in ASP, largely driven by improving server demand.
Micron’s revenue rose 15 percent QoQ to $1.981 billion, despite a slight decline in bit shipments, attributed to strong uptake of enterprise SSDs. Micron expects continued growth in enterprise SSD shipments in Q3.
Western Digital (WDC) saw a 3.3 percent increase in revenue to $1.761 billion, despite weak retail and PC markets. Looking ahead, WDC plans to launch new products targeting AI opportunities.
