CITIC Securities: Storage demand in the era of AI boosts the upward cycle, manufacturers' profitability gradually improves under the wave of price increases.

CM Securities released a research report stating that since 25Q2-25Q3, prices of NAND Flash, DDR5, and other products have seen an increase. Different from the temporary price increase caused by reduced production and active price hikes by storage manufacturers in 2024, the current cycle of the storage industry is mainly driven by the explosive demand for storage in the AI era, while the supply side capacity is limited. Therefore, the supply-demand gap in the storage industry may further widen in 26H1 or even 2026, and the upward trend in prices is expected to continue. Looking ahead to 25Q4, with the continuous increase in storage module prices, profits of domestic module companies are expected to accelerate.