AI To Drive Storage Media Demand In 2024
StorageNewsletter.com, Wednesday, December 13,2023
HDD and NAND-based storage media makers saw revenue and sales drop this year, but experts expect this to turn around in 2024, thanks in part to the demand for AI.
NAND and HDD makers saw a sales decline throughout 2023, with HDDs seeing declines in shipments each quarter and the price of NAND collapsing. Experts thought the market would start to turn around during the second half of this year, but that prediction never materialized. Still, they believe the cycle will shift in 2024 -- thanks in large part to generative AI's continued popularity.
The decreases in demand stem from overpurchasing of HDDs and NAND-based storage during the COVID-19 pandemic. Not long after, the economy for tech companies became volatile, leading large HDD and NAND consumers such as Microsoft to lay off thousands of workers.