Capital expenditure in artificial intelligence infrastructure has significantly boosted demand for enterprise solid-state drives and high-capacity storage, driving top memory suppliers to record revenue and profitability in the second quarter. Despite weaker momentum in smartphones and retail spot markets, major manufacturers are maintaining strict capital discipline while accelerating transitions to high-layer advanced nodes. By prioritizing high-performance storage solutions for server architectures, suppliers aim to capture expanding infrastructure opportunities and sustain long-term margin growth.

Key Highlights

• Divergent Market Dynamics: Strong demand for artificial intelligence servers boosts contract pricing and enterprise solid-state drive shipments, whereas sluggish smartphone and consumer end-market demand continues to weigh on spot market performance.
• Record Financial Results: Driven by higher average selling prices and surged bit shipments, top suppliers achieved record-high revenues and operating profit margins during the second quarter.
• Technology Migration: Manufacturers are accelerating the adoption of ultra-high-layer process nodes, expanding the penetration of high-capacity and low-power storage to handle massive data growth from agentic artificial intelligence applications.
• Strategic Capital Allocation: Suppliers maintain strict investment discipline, focusing resources on advancing new fabrication facilities, continuous research, and subsidiary capital market listings to maximize profitability and long-term partnerships.

Table of Contents

1. Market Update
2. TrendForce’s View
   • Samsung’s and SK hynix’s Respective NAND Flash Operating Profit Margins

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