Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report indicates that the price cycle, AI industry trends, and tariffs are expected to drive continuous increases in storage chip prices. DRAM and NAND prices have shown an upward trend, with significant price increases reported in May and June 2025. Major storage manufacturers have announced production cuts, while demand from cloud service providers remains robust, leading to a sustained expansion of the storage market [3][4]. Summary by Sections Price Trends - DRAM prices have risen significantly, with the price of 8GB DDR4 memory chips increasing from $1.65 in April to $2.10 in May, representing a 27% increase. In June, prices continued to rise, with Micron reporting a 50% price jump for DDR4. Samsung's 8GB DDR4 chips reached $4.8, well above the average of $3.3. The report anticipates a quarterly price increase of 18%-23% for server DDR4 and 13%-18% for PC DDR4 due to production cuts and tariffs [4]. Demand Drivers - The storage module is crucial in the AI industry, with strong demand from data centers and servers. Overseas cloud providers maintain high capital expenditures, and domestic cloud firms are increasing their investments, which is expected to boost the market for storage modules. The report highlights that the domestic market is likely to see a dual benefit of market scale and increased localization rates [5]. Beneficiary Companies - The report identifies several companies that are expected to benefit from these trends, including storage module manufacturers such as Demingli, Jiangbolong, and Baiwei Storage, as well as advanced storage firms like Zhaoyi Innovation and Hengshuo Co. Additionally, edge-side NAND/Nor flash manufacturers such as Zhaoyi Innovation and Beijing Junzheng are also highlighted [6].

Core Insights - The storage manufacturers have announced a reduction and transition in production of DDR4 and LPDDR4X for over six months, leading to significant adjustments in capacity [1] - The current supply of certain DDR chips and LPDDR4X resources in the spot market is tight, indicating a shift in market dynamics [1] - Mobile clients have maintained relatively healthy inventory levels, while PC OEMs have gradually reduced their inventory after a prolonged adjustment period [1] - Recent replenishment of inventory by mobile and PC end customers has driven an increase in prices for DDR4 and low-capacity embedded LPDDR4X this week [1]