Core Insights - The global storage industry is undergoing a profound transformation driven by AI technology and a supply crisis, with DRAM contract prices expected to rise by 58% in Q1 2026, particularly for server and mobile DRAM, which may exceed 60% [1][2] - This shortage is characterized as a "structural supply-demand imbalance," with Micron's executives indicating that the shortage may not ease until 2028 [1][2] - The current price surge is attributed to the explosive growth in AI models and inference scenarios, with AI data center storage demand now accounting for 50%-60% of the market [3] Supply and Demand Dynamics - The supply-demand gap in the storage chip market is worsening faster than expected, with Micron's VP stating that the shortage will persist until at least 2028 [2] - UBS and JPMorgan have expressed a consensus that storage chip prices will continue to rise, with predictions for DDR contract prices increasing by 58% and NAND flash by 27% in Q1 2026 [2] - The supply chain is facing challenges, as traditional storage products are experiencing shortages, leading major suppliers like Samsung and SK Hynix to plan significant price increases [2] Market Reactions and Valuation Adjustments - The A-share market has seen significant trading activity in storage stocks, with companies like Biwei Storage, Zhaoyi Innovation, and Jiangbolong reaching new highs, indicating a systematic re-evaluation of the storage industry's valuation logic [1][4] - Investors are focusing on the dual aspects of price increases and technological advancements, which are reshaping the valuation of A-share storage-related companies [4][5] Company Strategies and Growth Projections - Micron is planning to expand its DRAM production through an $1.8 billion acquisition of a facility in Taiwan, which is expected to significantly increase DRAM wafer output starting in H2 2027 [3] - Biwei Storage has projected record revenue and net profit for 2025, with expected revenue between 10 billion to 12 billion yuan, reflecting a year-on-year growth of 49.36% to 79.23% [5][6] - The current price increase is driven by structural demand from AI applications, which is expected to provide a "growth premium" to storage companies, enhancing revenue visibility and sustainability [6]