According to the latest survey by TrendForce, cloud service providers (CSPs), primarily from North America, are continuing to strengthen their investments in AI, which is expected to drive significant growth in enterprise SSD (Enterprise SSD) demand by the third quarter of 2025. In the context of low finished product inventory levels, the Enterprise SSD market is expected to shift to a supply-tight situation, which will support price increases, with a quarterly growth rate expected to reach 10%.
TrendForce points out that at the beginning of this year, due to suppliers implementing conservative capacity strategies, the NAND Flash market gradually shifted towards supply-demand balance. Changes in the international situation at the beginning of April affected the existing market rhythm for the second quarter, increasing the variables in price trends. Although some PC manufacturers accelerated shipments in the second quarter, they failed to effectively stimulate the overall shipment volume of NAND Flash products. Coupled with ongoing downward pressure in the retail market, suppliers are more cautious in controlling capacity.
However, recent storage demand has warmed up, with this growth momentum coming from the continuous shipment of high-end AI servers like the NVIDIA GB200; on the other hand, the increase in HDD orders since the beginning of this year reflects a trend of enterprise expansion, which is expected to continue growing throughout the year. It is evident that with the robust demand for CSP server construction, both SSDs and HDDs benefit from the expansion of corporate capital expenditures, leading to order growth.