Lates News

According to a report by CITIC Securities, we believe that the recent price pullback of major global storage companies in June and July was not due to weak performance, but rather a concentrated release of market concerns after the peak in price increase rates. Overall, the Q2 performance of relevant companies met expectations, and their products are still in an upward pricing cycle, with the revenue proportion from AI-driven data centers continuously increasing. Looking ahead, although the price increase rates for storage products may slow down, considering that the storage industry will still be in a state of supply not meeting demand by 2027, there will be effective support for the gross margins and profitability of companies along the supply chain. Furthermore, focusing on the most market-sensitive LTA, it can be seen that relevant companies are currently securing major customer demand with 3-5 year LTA agreements, and the flexible pricing mechanisms along with price floors are expected to reduce profit volatility and enhance valuations. We recommend paying attention to the HDD, DRAM, and NAND sectors.