AI services are shifting from model training to inference and agent-based applications. This transition requires servers to process and store larger data volumes in real-time. Consequently, U.S. cloud providers raised fourth-quarter eSSD order forecasts above record third-quarter levels.
SK Hynix and Samsung Electronics are intensifying competition to capture the expanding storage market. SK Hynix is currently qualifying its 122TB PS1101 E3.S high-capacity QLC-based drive with customers. Analysts project eSSDs will become the largest NAND market segment by 2027.