TrendForce reports that North American cloud service providers (CSPs) are ramping up investments in artificial intelligence, which is projected to significantly boost demand for enterprise solid-state drives (Enterprise SSDs) in the third quarter of 2025. With inventory levels currently on the lower side, the enterprise SSD market is anticipated to shift toward tighter supply, thereby supporting a potential price increase of up to 10% quarter-over-quarter1.
The firm notes that at the start of this year, suppliers adopted a more conservative production strategy, gradually steering the NAND Flash market toward a supply-demand equilibrium. In early April, changes in the international landscape affected market rhythm for the second quarter, adding more uncertainty to price trends. Although some PC manufacturers accelerated shipments in the second quarter, this did not substantially stimulate overall NAND Flash product shipments. Additionally, the retail market continues to face downward pressure, prompting suppliers to maintain cautious production control1.
However, recent recovery in storage demand is evident. Growth momentum partially stems from shipments of high-end AI servers such as NVIDIA GB200, while increased HDD orders at the start of the year reflect ongoing enterprise data center expansions. Looking ahead, the robust server buildout by CSPs is expected to drive further orders for both SSDs and HDDs, benefiting from continued corporate capital expenditure increases1.
1 Source: TrendForce via dramx.com (https://www.dramx.com/Market/20250526-38528.html)