The NAND Flash industry saw Q3 revenue growth driven by strong enterprise SSD demand from AI servers. ASP rose due to production cuts and higher enterprise SSD mix. For Q4, AI applications and HDD shortages will sustain price increases across segments, leading to further revenue growth and improved vendor profitability.

Key Highlights

• Overall Industry Performance: Q3 NAND Flash revenue grew, primarily driven by robust enterprise SSD demand from cloud service providers' expanding AI server infrastructure. Consumer product demand was less impactful due to earlier shipments.
• Shipments and Pricing: Some major suppliers saw increased shipments from enterprise SSDs and seasonal smartphone demand, while others experienced slight declines due to inventory adjustments. Average selling prices generally rose, thanks to successful production cuts and a higher proportion of enterprise SSD sales.
• Profitability Improvement: Benefiting from a higher mix of high-margin enterprise SSDs and increased ASPs, major vendors' profitability significantly improved, with some returning to profit.
• Future Outlook: In Q4, vendor inventories normalize, and process transitions limit significant shipment increases. AI applications will continue to boost demand for high-performance enterprise SSDs. Coupled with HDD supply shortages, prices are expected to sustain their upward trend, leading to further overall revenue growth and continued improvement in vendor profitability.
• Vendor Strategies: Suppliers are actively adapting strategies, including shifting resources to advanced processes for high-capacity enterprise SSDs, accelerating technology transitions, focusing on high-margin SSDs for AI server platforms, and investing in new technologies while expanding into server client markets.

Table of Contents

1. NAND Flash Industry’s Revenue Rose for 3Q25 as AI Boom Drove Enterprise SSD Demand; Upward Trend Is Expected to Continue in 4Q25
   • 3Q25 Revenue Ranking among NAND Flash Suppliers

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