Semiconductor revenue grew 27% QoQ in Q1 2026 to reach USD 319 billion – the highest quarterly growth Omdia has recorded since it began tracking the market in 2002. It marks the third consecutive quarter of double-digit growth, putting the market on track to surpass USD 700 billion in the first half of 2026.

Memory was the primary driver. DRAM and NAND revenue nearly doubled QoQ, accounting for more than 40% of total semiconductor revenue – well above the long-term average of around 20%.

NAND was a particularly strong contributor. Revenue rose 96% to just under USD 48 billion, with average selling prices up 95% sequentially, driven by sustained AI and data centre demand combined with ongoing supply constraints. High utilisation and limited supply recovery – due to technology transitions, yield learning and product mix challenges – are expected to keep NAND momentum strong through Q2, according to a press release from Omdia.

Outside of memory, growth followed a more historically typical pattern. Non-memory semiconductor revenue grew just over 2% QoQ – modest, but still better than the typical Q1 decline of around 4%. Microcontrollers, discretes and optical components saw slight to mid-single-digit sequential declines, while AI and data centre-related components outperformed and offset the usual seasonal weakness.