Soaring NAND and DRAM prices by approximately 20% - the surge primarily due to escalating AI demands and supply constraints in contracts
In the dynamic world of flash storage, the fourth quarter of 2025 is shaping up to be an interesting period. Here's a roundup of some key developments that are reshaping the industry.
Phison, a leading player in the flash storage market, reported a revenue of NT$5.934 billion in August, marking a 23% year-over-year increase. This growth aligns with the broader theme of data-center-led flash tightness, as the strength in Phison's revenue is attributed to non-consumer demand and closer tie-ups with NAND makers.
Cloud buyers are aggressively securing supply well into the future for enterprise SSDs, a trend that is likely to continue. This aggressive procurement, driven by supply shortages, has led to a focus on high-stack 3D NAND products. The appeal of 3D NAND lies in its faster read speed and larger die capacities, making it a preferred choice for CSP customers.
Contract prices for NAND and DRAM have seen an increase of 15-20% in Q4 2025, as per DigiTimes. This price hike is not unique to Phison; flash makers have more pricing power than usual in the year's final quarter, suggesting a favourable market for these companies.
Samsung, another major player, has delayed its V9 QLC to the first half of 2026, according to TrendForce. This delay could potentially impact the retail pricing for NVMe drives, as hyperscalers absorb more wafers for enterprise SSDs. If this trend continues, retail pricing for NVMe drives could be thinner than expected.
TrendForce also flags a structural shortage in nearline HDDs, forcing hyperscalers to accelerate QLC SSD deployments in 2026. The HDD supply is constrained, as mentioned in the article, adding to the demand for SSDs.
AI is rewriting the cloud storage hierarchy, according to the article. However, there is no publicly available information about which companies have increased their NAND and DRAM memory orders in the fourth quarter of 2025 or the reasons for these decisions.
In the face of these market dynamics, it's advisable for those planning an upgrade to watch retail memory prices closely. Prices are unlikely to remain low for long, so it's best to move quickly when a good price appears.
In conclusion, the flash storage market is experiencing significant changes, with cloud buyers securing supply well into the future, price hikes for NAND and DRAM, and the continued demand for 3D NAND. As we move into 2026, these trends are expected to continue, with potential impacts on retail pricing for NVMe drives and accelerated QLC SSD deployments due to HDD shortages.
