June semiconductor sales rose 12% month over month, above the 8% seasonal norm
A J.P.
A J.P. Morgan report says WSTS June semiconductor industry sales reached $152 billion, up 134% year over year versus 128% growth in May. Month-over-month growth was 12%, significantly above the historical June seasonal rate of 8%.
Non-memory sales reached $63.5 billion, up 38% year over year, with growth accelerating for the third consecutive month. Momentum is spreading from memory into microcomponents, analog, sensors and other areas.
In memory, DRAM sales totaled $56.8 billion, up 8% month over month and 373% year over year. NAND sales totaled $30.7 billion, up 15% month over month and 377% year over year. Average selling prices rose 275% and 368% year over year, respectively, with both measures accelerating for the eighth consecutive month.
J.P. Morgan forecasts industry sales of $1.68 trillion in 2026, up 111%, and $2.25 trillion in 2027, up 34%, with upside risk to those estimates. The report says the logic behind the outlook is that AI-driven demand is spreading beyond memory. Multiple companies have reported accelerating demand momentum, larger order backlogs, longer lead times and stronger pricing power.
J.P. Morgan identifies AI computing, memory and networking as the areas with the most favorable exposure. The cited stocks are NVDA, AVGO, AMD and INTC in computing; MU in memory; and AVGO and MRVL in networking.
Bottom line: June WSTS semiconductor data were significantly stronger than seasonal patterns, and growth is spreading from memory into non-memory segments. J.P. Morgan forecasts a $2.25 trillion industry in 2027, with upside risk, while AI computing, memory and networking are identified as the three core beneficiary areas.
Potential beneficiaries include NVDA, AVGO, AMD and INTC in computing; MU in memory; and AVGO and MRVL in networking. Accelerating growth in non-memory segments could also benefit semiconductor stocks outside memory as industry beta improves. The current forecast has upside risk, meaning fundamental momentum could exceed expectations.
Catalysts to monitor include whether subsequent monthly WSTS data continue to exceed seasonal patterns; whether year-over-year growth in non-memory segments continues to accelerate; whether DRAM and NAND ASP growth can keep increasing after eight consecutive months of acceleration; and company data on orders, backlogs and lead times.
Non-memory sales reached $63.5 billion, up 38% year over year, with growth accelerating for the third consecutive month. Momentum is spreading from memory into microcomponents, analog, sensors and other areas.
In memory, DRAM sales totaled $56.8 billion, up 8% month over month and 373% year over year. NAND sales totaled $30.7 billion, up 15% month over month and 377% year over year. Average selling prices rose 275% and 368% year over year, respectively, with both measures accelerating for the eighth consecutive month.
J.P. Morgan forecasts industry sales of $1.68 trillion in 2026, up 111%, and $2.25 trillion in 2027, up 34%, with upside risk to those estimates. The report says the logic behind the outlook is that AI-driven demand is spreading beyond memory. Multiple companies have reported accelerating demand momentum, larger order backlogs, longer lead times and stronger pricing power.
J.P. Morgan identifies AI computing, memory and networking as the areas with the most favorable exposure. The cited stocks are NVDA, AVGO, AMD and INTC in computing; MU in memory; and AVGO and MRVL in networking.
Bottom line: June WSTS semiconductor data were significantly stronger than seasonal patterns, and growth is spreading from memory into non-memory segments. J.P. Morgan forecasts a $2.25 trillion industry in 2027, with upside risk, while AI computing, memory and networking are identified as the three core beneficiary areas.
Potential beneficiaries include NVDA, AVGO, AMD and INTC in computing; MU in memory; and AVGO and MRVL in networking. Accelerating growth in non-memory segments could also benefit semiconductor stocks outside memory as industry beta improves. The current forecast has upside risk, meaning fundamental momentum could exceed expectations.
Catalysts to monitor include whether subsequent monthly WSTS data continue to exceed seasonal patterns; whether year-over-year growth in non-memory segments continues to accelerate; whether DRAM and NAND ASP growth can keep increasing after eight consecutive months of acceleration; and company data on orders, backlogs and lead times.