Phison Ekectronics

The share price of Phison Electronics (Taiwan) surged from 500 to amost 900 in the past six months. Any thoughts why?

Several factors drove the Phison Electronics stock surge in 2025, primarily tied to the massive growth in the artificial intelligence (AI) sector, which created unprecedented demand for NAND storage solutions

. Key drivers included Phison's leading position in the enterprise market with its new high-performance products and its record-breaking financial performance. 

Impact of AI on NAND flash market

A combination of surging AI-driven demand and underinvestment in NAND flash capacity has placed the memory market on a path toward a multi-year "supercycle". Phison's CEO has even warned that the NAND flash shortage could potentially last for a decade. 

• AI inference boom: Large-scale AI inference workloads require vast amounts of high-speed, NAND-based storage.
• Data center storage: A data center AI infrastructure buildout requires massive amounts of storage, which Phison and its partners, like Supermicro, are providing.
• Limited supply and higher costs: Phison's CEO noted limited investment in flash capacity, leading to constrained supply and higher prices, which directly benefits storage component suppliers. 

New products and enterprise dominance

Phison cemented its role as a leader in high-performance storage by releasing new, cutting-edge products, especially for the enterprise sector. 

• PCIe 5.0 SSD controller: In early 2025, Phison introduced its next-gen PCIe 5.0 SSD controllers (like the PS5028-E28).
• Collaborations: Phison is a dominant supplier to major PC manufacturers and continues to strengthen partnerships to address enterprise needs. For example, a collaboration with Supermicro addresses the need for high-density storage in AI and hyperscale workloads.
• 128TB enterprise SSD: In early 2025, Phison showcased the world's first 128TB enterprise SSD, demonstrating its innovation and capability in the data center market. 

Strong financial performance

Phison's revenue and earnings reports throughout 2025 exceeded expectations and reflected its market growth.

• Record-high revenue: Phison reported record-high quarterly revenues in the second quarter of 2025, demonstrating strong demand for its products.
• Controller revenue surge: The company saw a 90% quarter-over-quarter and 49% year-over-year surge in client SSD controller revenue.
• Increased market share: Phison has become the largest supplier in the mobile storage controller market. 

AI integration and innovation

Phison is embedding AI and machine learning into its own technology to drive innovation and support the market.

• aiDAPTIV+ technology: Phison's aiDAPTIV+ integrates AI and machine learning directly into its NAND controllers, enhancing the performance and reliability of its storage solutions for advanced AI applications.
• Addressing the AI market: The company is focused on expanding access to AI by offering cost-effective solutions for smaller organizations.