NAND flash prices in the 2nd and 3rd quarters of 2025. /Courtesy of TrendForce

Thanks to the production cuts and inventory reduction efforts by memory companies in the first half of this year, it is projected that NAND prices will rise by up to 10% in the third quarter.

According to TrendForce, a market research firm in Taiwan, the overall NAND prices for the third quarter are expected to increase by 5 to 10%. This is a slight rise compared to the second quarter (3 to 8%).

TrendForce noted, "Following the production cuts and inventory reduction by companies in the first half, the NAND flash market has shown significant improvements in supply and demand balance," adding, "As memory suppliers shift their production capacity to high-margin products, the overall supply of NAND in circulation has decreased."

Since the second half of last year, the NAND market has weakened due to end customers stockpiling inventory, causing suppliers to face inventory pressure, which led to a temporary drop in prices. Samsung Electronics, SK hynix, Kioxia, and Micron were hit hard by the economic slowdown, leading to a reduction in sales in the NAND institutional sector.

However, an analysis suggests that the recent and continued supply adjustments by suppliers have placed the price increase trend on track.

By product, prices for enterprise solid-state drives (SSDs), which saw no significant changes in the previous quarter, are expected to rise by 5 to 10% in the third quarter. This is due to the expected increase in demand for enterprise SSDs used in servers as artificial intelligence (AI) data centers continue to grow.

TrendForce explained, "The shipments of Nvidia's Blackwell platform are increasing quarter by quarter, and the demand for general-purpose servers is also expanding in North America," noting that, "Strong order momentum from major Chinese customers is expected to further enhance the demand for enterprise SSDs through the second half of the year."

※ This article has been translated by AI. Share your feedback here.