Investment Rating - The report indicates a cautious outlook for the storage industry due to tariff impacts and market uncertainties, suggesting a "Hold" rating for investments in this sector [7][20][36]. Core Insights - Tariffs have become a dominant variable affecting the entire storage industry chain, with the U.S. imposing tariffs as high as 125%, impacting prices of DRAM modules and SSDs [7]. - Major manufacturers like Micron and SK Hynix are adjusting strategies by raising prices and shifting focus towards high-end products such as HBM and DDR5, anticipating a significant increase in HBM demand [7][36]. - The market is experiencing short-term price volatility due to tariffs and supply-demand tensions, with SSD and DRAM prices fluctuating as demand remains uncertain [7][36]. - The rise of AI applications is driving demand for high-performance memory, despite an overall weak smartphone market [7][36]. - Various semiconductor policies are being implemented across the U.S., South Korea, and China, affecting the industry's operational landscape [7]. Summary by Sections Macroeconomic Overview - In April, China's manufacturing PMI index was at 49%, indicating a decline in manufacturing activity, while the U.S. PMI was at 48.7%, reflecting ongoing contraction in the manufacturing sector [8][9][11]. Upstream Market Dynamics - Morgan Stanley predicts a three-phase impact from tariffs on the storage industry, with the first phase leading to price increases due to stockpiling [20][22]. - The current phase is characterized by short-term price increases that are not sustainable, with economic recession risks looming [20][22]. - Major manufacturers are reducing production of older process technologies, focusing on advanced products to enhance profitability [26][30]. Passive Components - Major passive component manufacturers are raising prices due to strong demand and rising costs, with expectations of double-digit percentage increases [38]. Module Manufacturer Dynamics - Companies like Nanya and Adata are seeing revenue growth driven by AI applications, with expectations of improving DRAM contract prices in the upcoming quarters [39][40]. - The overall market is experiencing a price increase trend as supply-demand dynamics stabilize [43]. Domestic Spot Market - The storage market in April was characterized by tariffs, price increases, stockpiling, and a cautious market outlook, with significant fluctuations in SSD and DRAM prices [49][51]. - The market is expected to stabilize once tariff policies are fully established, allowing for a return to normal supply-demand dynamics [66].

Group 1 - The global GPU market is expected to experience significant price increases starting next month, with potential monthly hikes for the next few months, drawing widespread industry attention [1] - Recent signs of price increases in the GPU market have been observed, and by 2026, these price hikes are expected to spread globally, with clearer pricing strategies from AMD and NVIDIA [1] - The cost of GPU cores and VRAM accounts for nearly 80% of the total cost when delivered to AIB manufacturers, while prices for DDR5 and other mainstream DRAM modules have surged by two to four times [1] Group 2 - The price of graphics cards may reach up to twice the MSRP due to rising costs in components [1] - The global GPU price increase reflects a high demand in the computing power industry and provides a window of opportunity for domestic GPU supply chains [1] - Companies like Guotai Junan Securities and Guotou Securities highlight that artificial intelligence remains a key focus, with advancements in computing power and related technologies expected to drive future growth [1][2] Group 3 - Haiguang Information is identified as a core player in the domestic GPU sector, focusing on high-end processor chip development and sales, catering to AI and big data processing needs [2] - Moore Threads is recognized as a leading domestic GPU company [3]