Cathay Pacific Haitong released a research report saying that the storage industry has changed from being a beneficiary of AI computing power investment to a key bottleneck limiting AI infrastructure. Structural shortages driven by AI demand run through the entire industry chain, and the gap between supply and demand is still deepening. The industry's focus is expected to shift from single-quarter price/profit flexibility to long-term sustainability of high profits, from cyclical gaming based on expectations of price increases and falls to repricing based on high profit certainty, driving the upward trend in the valuation center. On the price side, the slowdown in the 26Q3 contract price increase is not a sign that the cycle is peaking; it is expected that the price increase trend will continue until 2027; long-term agreements do not limit the room for price increases, but rather make the price trend more predictable, exchanging short-term price flexibility for long-term profit and cash flow visibility.

Cathay Pacific Haitong released a research report saying that the storage industry has changed from being a beneficiary of AI computing power investment to a key bottleneck limiting AI infrastructure. Structural shortages driven by AI demand run through the entire industry chain, and the gap between supply and demand is still deepening. The industry's focus is expected to shift from single-quarter price/profit flexibility to long-term sustainability of high profits, from cyclical gaming based on expectations of price increases and falls to repricing based on high profit certainty, driving the upward trend in the valuation center. On the price side, the slowdown in the 26Q3 contract price increase is not a sign that the cycle is peaking; it is expected that the price increase trend will continue until 2027; long-term agreements do not limit the room for price increases, but rather make the price trend more predictable, exchanging short-term price flexibility for long-term profit and cash flow visibility.