Introduction to Rising Demand
TrendForce’s latest reports highlight a remarkable surge in demand for enterprise solid-state drives (SSDs) during the second quarter of 2024. This increase primarily stems from the deployment of NVIDIA GPU platforms and the growing storage requirements prompted by artificial intelligence (AI) applications.
Factors Fueling Demand
The heightened demand for high-capacity SSDs is further fueled by an upturn in orders from server brands. Unfortunately, suppliers faced challenges in accommodating this surge, as their capacity adjustments lagged during the first half of the year. Consequently, this disparity between demand and supply resulted in substantial shortages, significantly affecting pricing.
Forecasting Future Trends
As these supply shortages continue into the third quarter, TrendForce predicts an additional 15% escalation in contract prices compared to the previous quarter. This trend indicates a remarkable revenue growth of over 50% for SSD suppliers in Q2, with expectations for a nearly 20% rise in supplier revenues moving forward. North American cloud service providers (CSPs) show no indications of slowing their demand, confirming the sustained growth trajectory for enterprise SSD procurement.
