Driven by AI demand, server contract prices were secured ahead of schedule, though slow inventory digestion on the consumer side has kept negotiations at a standstill; meanwhile, the spot market continues to consolidate due to weak end-user demand. Over the long term, major manufacturers are ending their capital expenditure cutbacks and resuming expansion plans. By advancing process technologies, raising the proportion of high-capacity products, and sequentially bringing new fab capacity online, suppliers are going all out to support the massive demand for AI storage.
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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.
2026-2030 Global and Chinese NAND Flash Market Data
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.
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