The NAND Flash market is expected to remain in a 4–5% supply deficit throughout 2026, driven by surging AI-related demand and limited capacity expansion, with Chinese suppliers significantly boosting production capacity to nearly 19% of global bit output. Server shipments are projected to grow 17% year-over-year in the second half of 2026, further accelerating in 2027 due to Agentic AI commercialization and easing CPU/memory supply bottlenecks.
NAND Flash supply remains tight through 2026 due to AI server demand, but Chinese capacity expansion and consumer weakness will ease constraints by H2 2027.