DeepSeek drives demand in the storage market, and the storage industry’s bearish trend is expected to end sooner than anticipated.
Industry sources point out that Samsung Electronics, SK Hynix, and Micron Technology have already planned their price strategies for Q2, with DRAM spot prices expected to be near the bottom. While contract prices may still have some room for a slight decline, the chance of a rebound in Q2 is significantly increased.
It is understood that manufacturers plan to raise DRAM prices starting in Q2 2025, and NAND prices will gradually stabilize as inventory is reduced.
In the short term, the storage industry still faces challenges of oversupply, but price hikes by manufacturers are inevitable, and Q2 will become a turning point.
Due to DRAM supply constraints caused by the HBM capacity squeeze, and NAND benefiting from manufacturer production cuts and demand recovery, the conditions for price increases in Q2 are taking shape under the manufacturers’ strict control of supply.
Currently, memory prices are still driven by demand from AI servers and AI PCs. With the emergence of DeepSeek’s low-cost model, if it accelerates the adoption of AI servers by companies and further promotes the popularization of AI models, it may extend the price increase cycle for storage products.
For DRAM, if DeepSeek drives AI Edge demand, DDR5 demand in 2025 could exceed expectations, with prices remaining stable or increasing moderately.
Once AI server demand accelerates, it will support higher-frequency DDR5 server-level prices.
For NAND, AI PCs require larger capacity SSDs, but the increase in NAND Flash supply may offset some of the price gains.
If AI demand continues to grow, NAND prices are expected to maintain a slight upward trend in 2025.
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