Lates News

UBS's latest industry research shows that the upward price space of storage chips in the second half of 2026 is further expanding. DDR contract prices are expected to be revised upwards: a 32% increase quarter-on-quarter in the third quarter of 2026 (previously expected 17%), and an 18% increase in the fourth quarter (previously 12%). NAND is also being revised upwards, with a projected 30% increase quarter-on-quarter in the third quarter and a 12% increase in the fourth quarter, continuing its strong performance in the strong cycle. Analysis suggests that the supply and demand in the DRAM industry will remain tight at least until the first half of 2028. In 2027, chip demand is expected to increase by approximately 36.2%, significantly higher than the supply growth of 19.3%, resulting in a difficult-to-close gap in supply and demand reaching rare levels seen in the past 30 years. If downstream inventory replenishment is not taken into consideration, the supply and demand gap in 2027 may further expand from -8.1% in 2026 to -13.6%. Overall, the current upward cycle for storage chips is expected to continue until 2027. Industry revenue is projected to reach $992 billion in 2026 and rise to $1.76 trillion in 2027. However, the main risk lies in the downstream customers' ability to bear, especially for large cloud vendors who may need to continuously finance through the capital markets to support their investment expenditures.