Core Viewpoint - The storage industry has entered an accelerated upward cycle driven by explosive demand from the AI era, with limited supply-side capacity leading to a widening supply-demand gap and accelerating price increases [2][4][6]. Group 1: Demand Drivers - The current upward cycle in the storage industry is primarily driven by the explosive demand from AI servers and multimodal applications, marking a shift from traditional demand sources like smartphones and internet companies [3][4]. - Flash storage demand is expected to grow significantly, with data center storage needs projected to increase from 600EB in 2020 to 2.4ZB by 2028, driven by generative AI [4][8]. - The Sora2 model exemplifies the increased storage requirements, consuming nearly 100MB for a 10-second 4K video, a substantial increase compared to traditional text storage needs [11]. Group 2: Supply-Side Dynamics - Storage manufacturers are focusing capital expenditures on high-margin products like HBM, with limited plans for significant NAND Flash capacity expansion, leading to a constrained supply environment [31][34]. - Major manufacturers like Samsung, SK Hynix, and Micron are reporting record revenues and profit margins, indicating strong demand and effective inventory management [5][43]. Group 3: Price Trends - Storage prices have accelerated in October 2025, with increases ranging from 40% to 100% across various product types, driven by heightened demand from AI servers and proactive price adjustments by manufacturers [37][39]. - Specific products like DDR5 and DDR4 have seen significant price hikes, with DDR5 prices increasing by 102.6% in October [39]. Group 4: Future Outlook - The storage industry is expected to continue its upward trajectory into 2026, with supply-demand imbalances likely to persist, supporting ongoing price increases [6][60]. - Investment opportunities are recommended in both overseas and domestic storage manufacturers, particularly those involved in niche storage chips and supply chain components [6][60].