Samsung Targets AI-Optimized SSD Market with ‘Titan’ to Unlock New Memory Revenue Streams (Mar 14, 2025)

created At: 3/16/2025

Neutral

This analysis was written from a neutral perspective. We advise you to always make careful and well-informed investment decisions.

005930

Samsung Electronics

Fact

Samsung is developing AI-optimized ultra-high-capacity SSDs under the ‘Titan’ project and offering them as subscription-based services. Samsung held a 39.5% market share in the enterprise SSD market in Q4 2024, while the global SSD market is projected to grow from KRW 95 trillion (USD 72 billion) in 2024 to KRW 213 trillion (USD 162 billion) by 2029.

Opinion

Samsung’s AI-integrated SSD strategy represents a significant new growth driver, overcoming traditional memory market limitations. However, rising competition and market share expansion challenges remain key hurdles.

Core Sell Point

The success of the Titan project could have a major impact on Samsung’s stock, making it crucial for investors to closely monitor competitive dynamics and AI adoption trends.

Samsung Electronics is accelerating its push into the enterprise SSD market, leveraging the rapid adoption of generative AI technologies. Through its ‘Titan’ project, the company aims to integrate AI-optimized controllers into its SSDs, offering them as a subscription-based service to enhance AI processing efficiency in data centers. This strategy is designed to create new revenue streams amid a sluggish rebound in the DRAM and NAND flash markets.

The Titan project involves long-term subscription contracts with major global server providers, ensuring seamless AI integration into enterprise storage solutions. Samsung’s ultra-high-capacity SSDs, built on proprietary technology, focus on maintaining a competitive edge over rivals, while also strengthening customer retention (lock-in effect).

The global SSD market is experiencing rapid expansion. Market research projects growth from KRW 95 trillion (USD 72 billion) in 2024 to KRW 213 trillion (USD 162 billion) by 2029. Samsung retained its leading position in the enterprise SSD segment with a 39.5% market share in Q4 2024, but faces intensifying competition from SK Hynix and other industry players.

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