CMS·2026-01-21 11:25Investment Rating - The report maintains a "Recommended" rating for the storage industry, indicating a positive outlook for the sector's fundamentals and expectations for the industry index to outperform the benchmark index [3]. Core Insights - The global storage prices have exceeded market expectations in Q1 2026, with a tight supply expected throughout the year due to AI demand outpacing capacity expansion. This has led to significant price increases across various storage categories, benefiting multiple segments of the domestic storage industry chain [1]. - AI storage is driving increased demand, with a multi-tier storage system optimizing the rapidly growing KV cache space. Innovations such as NVIDIA's Inference Context Memory Storage Platform are enhancing storage capabilities, allowing for greater memory capacity without sacrificing speed [2]. - The supply side of DRAM production is expected to grow slower than demand, with major manufacturers like Samsung and SK Hynix projecting modest increases in output. This could lead to a supply-demand imbalance, particularly in client DRAM and server DRAM markets [6]. Industry Overview - The storage industry comprises 518 listed companies with a total market capitalization of approximately 15,092.5 billion [3]. - The absolute performance of the industry has shown significant growth, with a 12-month increase of 65.5% and a relative performance increase of 42.3% compared to the benchmark index [5]. Price Trends - In Q1 2026, DRAM prices are expected to rise by 55%-60%, while NAND prices are projected to increase by 33%-38%. This is attributed to manufacturers reallocating capacity towards server and HBM applications, leading to tighter supply in other markets [6]. - Major global storage manufacturers are beginning to release strong earnings forecasts, with significant revenue and profit growth anticipated in the upcoming earnings season [7]. Investment Recommendations - The report suggests focusing on storage manufacturers, storage module/chip companies, and storage testing/packaging sectors. Potential opportunities in storage control chips and interface chips are also highlighted [7]. - Key companies to watch include major players like SanDisk, Micron, SK Hynix, Western Digital, and others in various segments of the storage industry [7].