Core Viewpoint - The current storage upcycle began in Q2 2025, driven by "supply optimization + AI demand," with significant price increases expected to continue through at least the end of 2026 [1][6] Historical Cycle Review - Demand-driven price increases are more significant and sustainable, as seen in the 2016-2019 cycle where supply-demand imbalances led to substantial price hikes [2] - DRAM/NAND mainstream particle spot prices saw a maximum increase of 223% during previous cycles, lasting 12-18 months, while the current cycle's price increase is primarily due to supply contraction [2][3] Current Price Dynamics - As of mid-November 2025, DRAM (DDR4/DDR5) spot prices increased by up to 896%/377%, and NAND Flash spot prices rose by 282%, with contract prices lagging behind [4][5] - Current DDR4/DDR5 spot prices have reached historical highs, exceeding 2024 peaks by approximately 5-10% [5] Future Outlook - The visibility of storage price increases over the next six months is high, with contract prices expected to catch up to spot prices, maintaining a favorable industry outlook until at least the end of 2026 [6] - The market has entered a seller's phase since September, with price increases across all categories, and significant price hikes anticipated for enterprise SSDs and niche storage products [6][9] Investment Strategy - The industry is in the early stages of a super cycle, with high visibility of shortages and expected price increases in contracts, particularly benefiting companies closely aligned with storage manufacturers [9] - Recommendations include focusing on niche storage companies, those rapidly progressing in enterprise storage, and companies involved in enterprise SSD/memory chip design [9]