Core Viewpoint - The storage sector is experiencing a pre-market surge, with significant gains in companies like Micron Technology, Western Digital, SanDisk, and Seagate Technology, driven by a rapid increase in memory prices since 2026 [1] Group 1: Market Trends - Since the first quarter of 2026, memory prices have risen by 80% to 90% compared to the end of the fourth quarter of 2025, with all categories including DRAM, NAND, and HBM reaching historical highs [1] - The core driver of this price increase is the demand for general server DRAM, which has become a key component in the current market dynamics [1] Group 2: Industry Outlook - UBS analysts predict that meaningful supply relief in the global storage industry will not occur until around 2028, indicating a prolonged period of high demand [1] - The structural demand driven by AI data center construction is expected to continue enhancing the profitability and bargaining power of the memory supply chain [1] Group 3: Investment Focus - In the short term, UBS recommends focusing on the two nearly monopolistic HDD manufacturers, Seagate and Western Digital, as they are well-positioned to benefit from the current market conditions [1]

Group 1 - The core viewpoint of the article highlights a significant increase in memory prices since the beginning of 2026, with prices rising by 80% to 90% compared to the end of Q4 2025, driven by demand in the AI data center construction sector [1] - Major storage stocks, including Micron Technology (MU.US), Western Digital (WDC.US), SanDisk (SNDK.US), and Seagate Technology (STX.US), experienced pre-market gains of over 5% and 4% respectively, reflecting positive market sentiment [1] - UBS analysts predict that meaningful supply relief in the global storage industry will not occur until around 2028, indicating a prolonged period of strong demand and pricing power for the memory industry [1] Group 2 - The report from Counterpoint Research indicates that all categories of memory prices, including DRAM, NAND, and HBM, have reached historical highs, with general server DRAM being a key driver of the current price surge [1] - In the short term, UBS recommends focusing on the two nearly monopolistic HDD manufacturers, Seagate and Western Digital, as they are expected to benefit from the ongoing demand in the memory sector [1]