Tracking Hong Kong stocks concept | AI applications boost demand for storage chips Institutions: Currently at the beginning of a new cycle of storage boom (with concept stocks attached)

In the surge of applications of AI large models such as Google Gemini 3.0, Alibaba Qianwen, and Lingguang, global investors are regaining confidence in AI. As one of the most important materials for AI infrastructure, storage chips are once again favored by investors. It is widely believed in the industry that there is still a large room for price increase in storage chips, and this trend will continue at least until the middle of next year. The price increase for DDR5 will be even more substantial; as international storage giants continue to raise product prices, domestic storage manufacturers are following suit. With the sharp increase in demand for high-performance storage in AI, companies like Samsung are shifting storage chip production capacity towards advanced memory products such as High Bandwidth Memory (HBM), leading to a tightening supply of common storage widely used in phones, computers, and servers, and triggering panic buying among some customers, continuously driving up prices. In October, Samsung Electronics led the way in suspending DDR5 DRAM contract prices, followed by other storage manufacturers such as SK Hynix and Micron, causing market turmoil. In October, the price of DDR5 16Gb increased by over 102%, while the price of DDR4 16Gb also increased by over 92%. In terms of demand, on one hand, due to the shortage of DDR4, PC manufacturers are accelerating the adoption of DDR5, increasing demand; on the other hand, the continuous release of AI computing power is also increasing the demand for HBM and DDR5. By 2025, the global DDR5 memory production capacity gap is estimated to be about 15%, while demand is growing at a rate of 20% per year. Acer Chairman and CEO Jason Chen recently stated, "It depends on when China's DDR5 production capacity can be increased on a large scale - as long as this wave of capacity catches up, the shortage problem can be solved, and prices will gradually stabilize." Chairman of memory module leader Kingston Technology, David Sun, stated that currently both DDR4 and DDR5 are in short supply, and it is expected that from the fourth quarter, the price increase for DDR5 will exceed that of DDR4. Industry insiders predict that the price increase for DDR5 next year will be even more substantial. According to estimates from institutions, the price of DDR5 16Gb in the first half of 2026 may reach as high as $30. Sinolink stated that the start of each storage cycle (in 2008, 2016, etc.) is driven by emerging technologies that promote product upgrades and innovations, leading to an increase in the total volume, penetration rate, and storage value of new products, pushing the storage market to a new level. With the increasing demand driven by AI, we are currently at the beginning of a new storage cycle. It is recommended to continue to focus on storage inventory, price data, and the demand for storage chips driven by the increase in AI computing power. Related concept stocks: Semiconductor Manufacturing International Corporation (00981): According to financial reports, Semiconductor Manufacturing International Corporation's sales revenue in the third quarter reached $2.382 billion, a year-on-year increase of 9.7%; the gross profit margin was 22%, an increase of 1.6% from the previous quarter. Capacity utilization has increased to 95.8%, a 3.3% increase from the previous quarter. In terms of product platforms, the ultra-low power 28nm logic process has entered the mass production stage, providing customers with lower power consumption and higher quality solutions; the image sensor CIS and signal processor ISP processes continue to iterate, improving light sensitivity, image quality, and signal-to-noise ratio, while developing optical process platforms that cover more wavelength bands; the embedded storage platform is expanding from the consumer market to the automotive and industrial MCU (microcontroller) fields; special storage platforms Nor and NAND (both non-volatile storage) provide higher density, smaller size, and lower power consumption high-reliability storage platforms. HUA HONG SEMI (01347): According to financial reports, HUA HONG SEMI's revenue in the third quarter reached $635.2 million, a year-on-year increase of 20.7%; the gross profit margin was 13.5%, a 1.3% increase year-on-year and a 2.6% increase sequentially. Due to the increased demand for flash memory, logic, and analog products, HUA HONG SEMI's revenue from the 65nm and below processes increased by 47.7% year-on-year, accounting for 27.1% of total sales revenue. SHANGHAI FUDAN (01385): As a domestic chip design company with a wide product line, the company's business includes four major product lines: security and identification chips, non-volatile memory, smart metering chips, and field-programmable gate arrays (FPGAs). The company provides chip testing services to customers through its subsidiary SINO IC.