As AI infrastructure spending accelerates worldwide, who stands to gain most? NAND memory revenues have reached record levels, reshaping industry competition.
The global NAND flash memory market generated a record US$46 billion in revenue during the first quarter of 2026 (1Q26), driven by surging demand for artificial intelligence (AI) infrastructure and enterprise storage, according to Counterpoint Research.
The market nearly doubled sequentially from the previous quarter and expanded by around 250% year-on-year, marking one of the strongest growth periods in the industry’s history. Counterpoint noted that NAND revenues in the first quarter alone exceeded the industry’s total annual revenue recorded in 2023.
Rising demand for AI servers and large-scale computing systems has emerged as the primary growth driver. Enterprise solid-state drives (eSSDs), widely used in AI data centres, accounted for 43% of total NAND revenue during the quarter and are expected to contribute more than 60% by the end of 2026.
Strong demand and tightening supply conditions have also pushed NAND prices higher, mirroring trends previously seen in the DRAM market.
Samsung remained the world’s largest NAND supplier with a 29% revenue share in the first quarter of 2026. However, its share declined from 32% in mid-2025 and 31% a year earlier as competition intensified. SK hynix, including Solidigm, held second place with an 18% share, down from 22% in the previous quarter but still ahead of rivals.
The race for third place has become increasingly competitive. Kioxia accounted for 14% of global NAND revenue, while Micron and SanDisk each held 13%. China’s Yangtze Memory Technologies Co. (YMTC) matched those companies with a 13% share, up from 8% in the first quarter of 2025 and 11% in the preceding quarter.
Counterpoint identified YMTC as the fastest-growing major supplier. The company’s revenue increased by approximately 445% year-on-year, supported by strong domestic demand in China and higher NAND prices.
Looking ahead, YMTC is pursuing an initial public offering (IPO) in China. Commenting on this trajectory, MS Hwang, Research Director at Counterpoint Research, noted: “If YMTC secures extra capital through this IPO, it will be fully equipped to scale up operations. Under this scenario, we expect YMTC to surpass both Kioxia and Micron, widen its lead to emerge as the world’s No. 3 NAND player.”
