Semiconductor revenue surged 27% in 1Q26, topping $319bn as memory sales exploded. Omdia’s quarterly data marks the biggest QoQ jump since 2002. DRAM and NAND flash drove the climb, each lifting average selling prices sharply amid relentless AI demand for manufacturers and data centers alike, reshaping supply chains and pricing strategies. and investors watch closely.

NAND revenue hit nearly $48bn, up 96% QoQ, as prices jumped 95% sequentially, fueled by data‑center workloads and scarce supply. The component now accounts for over 40% of total semiconductor sales, double the long‑term average of 20%. This distortion signals a shift toward high‑margin memory products for the global tech industry and investors watching closely.

Outside memory, non‑memory revenue grew only 2% QoQ, a modest rebound from the typical 4% Q1 decline. Microcontrollers and discretes slipped slightly, while AI‑centric chips defied the seasonal drop, sustaining growth. Analysts predict 2Q26 will see a 20%+ rise, keeping the market on track for a $700bn half‑year in 2026 as global tech demand remains.

The record‑setting quarter underscores AI’s dominance in silicon demand and highlights ongoing supply constraints that keep NAND prices high. For consumers, faster memory translates to snappier devices and richer cloud experiences. For manufacturers, the surge pressures margins and accelerates chip‑design cycles toward next‑gen architectures in.