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ADATA Posts Stellar Revenue Growth in January 2024 Amidst Rising DRAM and NAND Flash Prices

ADATA's significant revenue surge highlights optimistic outlook for the memory industry, driven by AI applications and strategic supply adjustments
Taiwan
a 3260.TWO Mid and Small Cap 2000 Tech 350 Semicon 75
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ADATA Technology, a leading memory module manufacturer, reported a remarkable 63.75% increase in consolidated revenue for January 2024, reaching NT$3.565 billion compared to the same period last year. This performance also represents a 13.35% increase from December 2023. Chairman Chen Libai attributes this growth to the anticipated rise in DRAM and NAND Flash prices in the first half of 2024, alongside a growing willingness among customers to stock up, sustaining operational growth.

Chen’s optimism extends beyond immediate financials, forecasting a positive trajectory for the memory industry driven by advancements in AI chip technology. He expects both the demand for memory and its applications, particularly AI, to rise quarterly and annually in the second half of the year. With DRAM prices increasing and inventories stabilizing, upstream suppliers are expected to gradually ramp up production capacity utilization, focusing on high-margin products such as HBM and DDR5 without significantly affecting short-term industry and price trends.

On the NAND Flash front, the supply strategy of production cuts and limited shipments is projected to lead to quarter-over-quarter price increases in the first half of the year, with the sector anticipated to end its two-year streak of losses in the latter half, marking a return to profitability. This optimistic outlook suggests a healthy balance of memory supply and demand, positioning 2024 as a robust and bullish year for the memory industry.

ADATA’s January revenue boost was fueled by a rebound in customer orders across all product lines, with NAND Flash-related products, including SSDs, memory cards, and flash drives, witnessing nearly a 20% month-on-month increase. DRAM products dominated January’s revenue, accounting for 44.09%, followed by SSDs at 30.15%, and other products, including memory cards and flash drives, making up 25.76%. This diverse revenue composition underscores ADATA’s strong position in the memory sector, benefiting from strategic market trends and customer demand patterns.

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