J.P. Morgan Electronic Components: Storage Production Trends – Solid Data Center Capacity Expansion in December 2025
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J.P. Morgan analyzes December 2025 HDD and SSD shipment trends using TSR data, highlighting solid capacity expansion driven by data center demand. December HDD production reached 11.3 million units, up 11% year-over-year but down 0.3% month-over-month. Nearline HDDs accounted for 6.7 million units, marking a 15% year-over-year increase. Total HDD capacity stood at 158.5 EB, surging 32% year-over-year, with nearline HDDs contributing 144.8 EB. Notably, monthly production of 32TB and above nearline HDDs exceeded 100,000 units for the first time. For SSDs, December production hit 31.9 million units, up 13% year-over-year, with enterprise and data center SSDs reaching 5.6 million units, a 24% year-over-year jump. SSD capacity totaled 51.1 EB, growing 54% year-over-year, while enterprise SSD capacity expanded 82% to 30.6 EB. For full-year 2025, enterprise and data center SSD capacity skyrocketed 156% to 262.5 EB. TSR noted that hyperscale cloud demand remains robust heading into 2026. J.P. Morgan maintains TDK (6762.T) as its top pick among HDD electronic component manufacturers, rated Overweight with a target price of 2,700 yen, advising investors to buy on dips. While short-term memory shortages and rising prices pose downside risks to terminal demand and equities, medium-term growth potential remains intact.