As demand expands due to growth in the artificial intelligence (AI) market, the supply of enterprise solid-state drives (eSSD) is increasing, and there are analyses predicting that NAND flash prices could rise by as much as 10% in the third quarter of this year.
According to TrendForce, a Taiwanese market research firm, NAND prices are expected to rise by 5% to 10% in the third quarter of this year. This continues the upward trend from the second quarter (3% to 8%). It is anticipated that the increased AI investments from big tech companies, rising demand for eSSD, and decreasing inventory levels across the supply chain will drive up prices.
TrendForce noted, "The ongoing AI investments by major North American cloud service providers (CSP) are expected to significantly increase eSSD demand in the third quarter." It added, "The corporations' SSD market will transition to a supply shortage as finished goods inventory levels remain low," stating, "This supports the potential for a price increase of up to 10% compared to the previous quarter."
However, TrendForce analyzed that last month's reciprocal tariff policy in the United States caused volatility in the price trends for the second quarter. TrendForce commented, "Some PC manufacturers increased their shipment volumes in the second quarter, but they did not significantly boost the overall demand for NAND products," adding, "Due to the ongoing weakness in the retail market, suppliers have intensified production control."