After the release of November monthly sales from several Taiwan-based tech suppliers, investment firm Wedbush Securities said server and memory components continued to show exceptional strength.
“November aggregate server component sales were 7 % ahead of typical linearity, primarily driven by AVC (3017.TW) and Aspeed (5274.TW), whose sales came in above expectations,” Wedbush analyst Matt Bryson wrote in a note to clients. “We view the strong results as reflective of the robust underlying spend for both standard and AI servers. Positive results very much mirror our discussion throughout Asia earlier this month, which implied continued strength in both current and forward trends for AI servers, though solid Aspeed results also point to continued solid demand trends for standard servers.”
Aspeed works with Nvidia (NVDA) and AMD (AMD) in the server space.
Memory was also strong in November, which Bryson said is a continuation of the trend in recent months, looking at sales from Taiwan-based companies Transcend, Phison and Nanya.
“We believe the memory pricing uptick that started in the March quarter has not only carried on through CQ3 but is even more pronounced in Q4,” Bryson explained. “While we believe Nanya (and to some extent module makers) are benefitting from DDR4 shortages tied to the rapid EOL of this product set, we see strength now as much broader based due to unexpected upticks in demand from [cloud service providers] in the August and September periods which have created shortages throughout DRAM and NAND. We now expect trends will continue into 2026, with CSPs having significantly lifted their outlook for requirements through next year.”
Micron (MU), Samsung (SSNLF) and SK hynix (HXSC.F) are the leading providers of memory chips.