Driven by surge in AI server demand, enterprise SSD shortages have catapulted average selling prices and gross margins to record highs, pushing the sector into a supercycle. Despite weakening consumer end-market demand and constrained capacity expansion caused by capital expenditure shifting toward DRAM/ HBM, supply imbalances are expected to sustain price momentum into the next quarter while accelerating high-capacity storage adoption.
For the price chart of global end prices of SSD, TrendForce segments product categories in accordance with capacity (from 120GB to 2048GB and above) and user interface (SATA3, PCIe 3.0/4.0/5.0).
The explosion of agentic AI services has driven server demand, pushing memory prices and revenues to a peak. Subsequently, end-user consumer electronics were suppressed by high costs, plunging the market into oversupply and price adjustments. As humanoid robots and autonomous driving become widespread, edge storage is unlocking a new wave of prosperity while accelerating Chinese manufacturers' expansion in domestic substitution and global strategy.
AI demand boosts DRAM/NAND logic. Contract market sees high visibility via agreements, though downstream demand weakens. FMS showcases standard transitions where high-density flash addresses memory-wall challenges as near-compute cache for AI. HBF adoption hinges on major chipmakers' ecosystem integration.
Growth in client SSD contract prices has slowed sharply under multiple market pressures. Surging costs from other component shortages and excess system inventory forced buyers into cautious procurement. Meanwhile, suppliers held prices firm by shifting capacity toward enterprise SSDs. This stalemate is expected to keep contract prices plateauing at elevated levels moving forward.
Capital expenditure in artificial intelligence infrastructure has significantly boosted demand for enterprise solid-state drives and high-capacity storage, driving top memory suppliers to record revenue and profitability in the second quarter. Despite weaker momentum in smartphones and retail spot markets, major manufacturers are maintaining strict capital discipline while accelerating transitions to high-layer advanced nodes. By prioritizing high-performance storage solutions for server architectures, suppliers aim to capture expanding infrastructure opportunities and sustain long-term margin growth.
Memory chip prices hitting record highs have damaged customer demand, causing contract price growth to narrow significantly. Suppliers aim to sustain high unit prices by diverting capacity to enterprise applications, whereas buyers strongly resist after reaching cost limits. Driven by Chinese vendors capturing market share with lower price hikes, upward momentum has slowed markedly. As the impact of supply restrictions fades, the market will enter a plateau, with future direction hinging on end-market clearance and capacity reallocation.
With mobile DRAM inventory restocking largely completed and demand starting to soften, the urgency of procurement negotiations has diminished, and 3Q26 contract price settlements are likely to be pushed back further. On the pricing front, Samsung’s hikes have clearly moderated this quarter, as its previous quotes were already at elevated levels; by contrast, if SK hynix and CXMT aim to close the pricing gap, their increases will appear relatively more pronounced. TrendForce projects that the overall quarterly hike will narrow from last quarter to around 8-13% QoQ.
Looking ahead to 4Q26, under the combined pressure of weak end demand and elevated inventory levels, price increases are expected to further converge. However, the ongoing trend of suppliers shifting capacity toward server and HBM applications will remain intact, providing key support for keeping quarterly contract prices from falling back.
In July, high prices combined with weak consumer demand paralyzed the NAND Flash wafer market, resulting in flat contract prices and extremely low transaction volumes. While mainstream TLC and QLC prices stagnated, MLC recorded slight gains due to supply scarcity and substitution constraints. Overall market sentiment remains strictly cautious.
Resource reallocation to advanced processes has constrained niche capacity. Driven by inelastic demand in networking and automotive applications alongside severe shortages, SLC prices have surged sharply. While MLC retains baseline demand support, downstream cost tolerance has reached its limit, narrowing price gains toward high-level consolidation. Looking ahead, market trajectories are expected to diverge further, with SLC remaining strong and MLC leveling off.
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