Guosen: AI reasoning demands reshaping storage paradigm, domestic storage meets industrial upgrading period.

Guosen released a research report stating that AI demand is driving storage demand, with overseas manufacturers focusing on high value-added server products. This overflow of demand and the opening of opportunities for domestic enterprises and smartphone brands to penetrate the market is expected to lead to profit growth for domestic storage manufacturers during the upturn in the industry cycle. As the industry chain is restructured, domestic storage manufacturers are expected to achieve profit growth through a positive cycle of customer acceleration, product structure upgrading, and increased imports. In addition, with overseas manufacturers exiting the market, domestic niche storage manufacturers are expected to fill the demand gap in markets such as 2DNAND and niche DRAM. The current industry prosperity is expected to continue, so it is recommended to pay attention to storage module manufacturers. Key points of Guosen's report include: 1. Supply-demand resonance leading to exponential growth in the storage market 2. AI demand reshaping a new paradigm for storage, where storage is no longer just a computational resource but a core infrastructure for determining the overall performance and limits of AI systems 3. Domestic storage facing a period of industrial upgrading Risks mentioned in the report include: 1. Price growth in storage not meeting expectations 2. Downstream demand not meeting expectations 3. Risks of intensified industry competition 4. Risks of unfavorable changes in international relations.