(Image credit: SMI) The storage market in general, and the SSD market in particular, has changed structurally in a matter of several quarters due to overwhelming demand for storage devices from the AI sector. As a result of the rapid price increase, demand for solid-state drives and other memory-based PC components dropped in retail in the first quarter. But as paradoxical as it might seem, shipments of SSD controllers increased in Q1 2026 so significantly that both Silicon Motion and its rival Phison posted record Q1 results. This happened not only because these companies increased sales of their data center and enterprise-grade controllers to hyperscalers and server makers, but also because they increased sales of all types of products, both to SSD producers and NAND manufacturers.…