Ping An Securities·2025-11-06 10:39Investment Rating - The industry investment rating is "Outperform the Market" [1][96]. Core Viewpoints - The storage market is expected to steadily grow due to the high demand for enterprise-level products driven by AI development, particularly in infrastructure and server segments. The demand for high-end products like HBM and DDR5 is increasing, while eSSD products are gaining traction due to HDD supply shortages and cost optimization from QLC particle promotion [3][89]. - A recovery in demand combined with a shift in production capacity is leading to a comprehensive price increase for storage products. From Q2 2025, mainstream storage product contract prices began to rise, with forecasts indicating a quarter-on-quarter increase of 13%-18% for DRAM and 5%-10% for NAND Flash in Q4 2025 [3][19][89]. Summary by Sections Storage Industry Overview - The storage industry is experiencing a comprehensive price increase, with high-end product demand remaining strong. The market is expected to maintain a stable growth trajectory due to the increasing storage capacity of traditional electronic products and the maturation of AI terminal products [3][89]. DRAM Market - HBM demand continues to be robust, with the DRAM market expected to outperform NAND Flash. The global DRAM market size is projected to reach $97.37 billion in 2024, a year-on-year increase of 91%, driven by AI's demand for high-value products [11][89]. NAND Flash Market - The NAND Flash market is also recovering, with QLC technology being promoted and eSSD penetration accelerating. The global NAND Flash market size is expected to grow to $69.6 billion in 2024, a 75% year-on-year increase [11][89]. Investment Recommendations - The report suggests focusing on companies such as Jiangbolong, Zhaoyi Innovation, and Lanke Technology, which have made significant breakthroughs in product technology and market clients, potentially filling the domestic mid-to-high-end market supply gap [3][89].