As we step into 2025, a notable upswing is being witnessed in the prices of solid-state drives (SSDs), dynamic random-access memory (DRAM), and hard disk drives (HDDs). Propelled by a sharp increase in artificial intelligence (AI) demand coupled with a constrained supply, the market is currently facing its most stringent conditions in several years.

When it comes to SSDs, there's a divergence in prices among consumer-grade models. Entry-level PCIe 3.0 1TB SSDs are averaging around $34, whereas high-end enterprise PCIe 5.0 1TB variants range between $160 and $180. Owing to a reduction in wafer production, large-capacity TLC SSDs are encountering a 5-7% supply shortage, which is helping to keep prices steady.

In the DRAM sector, contract prices are on a continuous ascent in 2025. Specifically, PC DRAM contract prices have surged by 8-13% on a quarter-over-quarter basis in the third quarter of 2025, although this growth rate is anticipated to decelerate in the fourth quarter.

The HDD market, boasting a global valuation of $26.5 billion, has witnessed enterprise shipments hit 67.2 million units, with an average capacity exceeding 18TB. The AI industry's push for petabyte-scale storage has escalated the demand for SSDs, thereby constraining the capacity allocation for HDDs.

The root causes of these price hikes can be traced to both demand-side and supply-side factors. On the demand front, the AI sector's need for petabyte-scale storage and cloud giants' race for high-capacity storage solutions are driving forces. On the supply side, leading manufacturers are reallocating their production capacities, while long cycles for wafer fab technology upgrades and policy restrictions are also playing a role. Additionally, cost and logistics considerations, such as escalating controller chip prices and extended shipping durations, are contributing to the price increases.

These price hikes have sent ripples throughout the entire supply chain. Users of storage equipment are increasingly turning to SSDs, prompting manufacturers to ramp up their production. Consequently, data center and enterprise storage costs have risen. Meanwhile, the semiconductor industry is grappling with a surge in demand for memory chips that domestic manufacturers are finding challenging to meet in the short term. In the retail market, there's been a noticeable uptick in the circulation of used hard drives, along with an increase in consumer-grade SSD terminal prices.

Looking ahead, it's clear that SSDs won't be able to fully replace HDDs anytime soon. Instead, we're likely to see a complementary landscape emerge, where SSDs handle performance-intensive tasks and HDDs manage large-capacity storage needs. As SSD costs decline and QLC technology matures, SSDs are expected to gradually erode HDD's share of the mid-range market. However, HDDs will cement their irreplaceable position in cold storage, thanks to their "low cost per TB" advantage.