Investment Rating - The storage industry is expected to enter a "prosperity cycle" with a recommendation to focus on specific companies such as Demingli, Jiangbolong, and Zhaoyi Innovation [4][72][74]. Core Insights - The demand for storage is driven by AI, with a significant shift from HDD to SSD/DRAM due to the increasing data volume and the need for faster access [2][18][72]. - The supply side is innovating with CBA and HBF technologies to overcome the limitations of traditional memory, enhancing storage density and performance [3][40][52]. - The semiconductor equipment market is projected to benefit from increased capital expenditure by storage manufacturers, with NAND equipment market size expected to reach $13.7 billion in 2025 [4][61][72]. Summary by Sections Storage Cycle - The storage industry exhibits clear cyclical characteristics, with the current cycle driven by AI demand and supply optimization from major manufacturers [9][12]. Demand Side - The transition from cold data to warm data is accelerating the replacement of HDDs with SSDs, as AI applications require more frequent data access [2.2][28]. - The data generated by AI applications is expected to grow exponentially, with projections indicating a shift from megabytes to exabytes and zettabytes [2.1][21]. Supply Side - CBA technology is crucial for achieving high density and performance in storage solutions, with applications in next-generation DRAM and NAND technologies [3.1][40]. - HBF technology offers significant advantages in capacity and energy efficiency, positioning it as a key solution for AI applications [3.2][52]. Semiconductor Equipment - The semiconductor equipment market is anticipated to grow significantly, with NAND equipment sales projected to increase by 42.5% in 2025 [4.1][61]. - Innovations in etching and deposition equipment are essential for advancing storage density and performance [4.2][68]. Investment Recommendations - The report suggests focusing on companies that are well-positioned to benefit from the storage industry's growth, including Demingli, Jiangbolong, and Zhaoyi Innovation [4][72][74].