Storage is the strongest main line!
Stronger among the strong!
In such a market, it can still lead the market rebound.
You, my friend, are too good!
The reason is simple: the storage giant Samsung in Korea is taking the lead.
They mentioned pausing reports, but haven’t clearly stated prices; however, those in the know understand that it means price increases.
Following closely, Micron and SK Hynix are also synchronously following suit.
Who are they raising prices for?
DDR5.
That’s the RAM we use in our phones and computers.
Prices have already increased a couple of rounds; why raise them again?
The fundamental reason is that the big manufacturers feel the increases were too low, and now everyone is calculating together to make money.
By mid-November, they will finalize the prices and then enjoy counting their profits.
For us downstream buyers, can we firmly say no?
Not really, they have the strength; this is the essence of scarcity.
Moreover, they have a reason to raise prices; as long as they are backed by the big tree of AI, they won’t worry about orders.
The demand numbers speak for themselves.
Why is DDR5 seeing the most significant price increase?
Because the big manufacturers prefer to produce HBM, high-bandwidth memory, which has much higher profit margins than DDR5, seemingly three times higher.
However, DDR5 and HBM share the same production line; once you produce one, you can’t produce the other. If everyone focuses on HBM, there won’t be excess capacity to produce DDR5.
This simple logic makes DDR5 the more scarce resource.
But I want to say, whether it’s HBM or DDR5, both are strong; the entire storage sector is not bad. Regardless of how they raise prices, who is more scarce, in this industry with a big alpha background, buying Sino-Korean semiconductors is just one word: worry-free.
I have been optimistic about this logic since before the National Day holiday, but I am a person who values diversified allocation, so I didn’t invest too much in this direction. As the stock prices kept rising day by day, I thought I would wait for a pullback; after all, who dares to buy at new highs? Isn’t that just pure temptation?
It turns out I was wrong.
Storage is still too strong.
By the time I realized it, it was already too late to regret.