Long-term agreements and server demand provide a solid foundation for the contract market, while consumer memory procurement remains conservative due to cost pressures. The spot market saw a brief price stabilization driven by individual module makers, yet overall buyer momentum remains weak. Looking ahead, market conditions are projected to shift toward oversupply as major suppliers expand capacity and upgrade technology. Future market balance will heavily depend on the accelerated adoption and breakthrough of AI Agent applications to drive enterprise storage demand.

Key Highlights

• Contract & Spot Dynamics: Long-term contracts and server demand stabilize the contract market, whereas consumer procurement turns cautious under severe cost pressures. Spot market prices briefly stabilized due to targeted buy-ins by select module makers, but broad demand remains soft.
• Supply-Demand Shift: The market is expected to transition from tight supply to a more relaxed balance. Demand is dampened by declining consumer product shipments, while supply rises significantly due to supplier expansion and tech upgrades.
• Supplier Strategies: Major manufacturers are shifting capacity toward enterprise SSDs, leveraging new fab capacity and advanced process migrations to maximize output efficiency.
• Key Swing Factor: Breakthrough adoption of Agentic AI applications could significantly boost enterprise storage demand, potentially returning the market to a balanced state or extending seller dominance.

Table of Contents

1. Market Update
2. TrendForce’s View
   • NAND Flash Sufficiency Ratio

<Total Pages: 2>