Wedbush: Server and storage component sales remain strong in November. The industry's high prosperity may continue until 2026.

After several Taiwan technology suppliers released their November monthly sales data, investment bank Wedbush issued a research report pointing out that server and storage components continued to maintain strong growth momentum beyond expectations. Wedbush analyst Matt Bryson wrote in a client report, "Total sales of server components in November were 7% higher than the usual linear growth level, mainly driven by the better-than-expected sales performance of Qihong Technology and Xinhua Technology. We believe the strong performance reflects robust underlying spending in the standard server and AI server sectors. This is highly consistent with our research findings earlier this month in the Asian region - the current and future trend of AI servers will continue to improve, and the outstanding performance of Xinhua Technology also indicates that the demand trend for standard servers remains strong." It is understood that Xinhua Technology has established partnerships with NVIDIA Corporation and AMD in the server field. The storage sector also showed strong performance, with Bryson pointing out through analysis of sales data from Chinese companies such as Creative Information, United Microelectronics Corp. Sponsored ADR, and South Asia Technology, continuing the growth trend of recent months. "We believe that the upward trend in storage prices that started in the first quarter has not only continued in the third quarter but is even more significant in the fourth quarter. Although South Asia Technology (and some module manufacturers) are benefiting from the supply shortage caused by the rapid obsolescence of DDR4 products, the strong foundation of the current industry is more widespread - unexpected growth in demand from cloud service providers in August-September led to shortages in DRAM and NAND products across the board. We expect this trend to continue until 2026, as cloud service providers have significantly raised their demand expectations for next year."