HK Stock Market Move | The growth in storage concepts ranks high, and SanDisk's long-term financial guidance greatly exceeds expectations. AI demand is expected to extend the storage prosperity cycle.

The storage concept has seen significant gains. As of the time of reporting, the Southern Eastern SK Hynix Daily Leveraged Product (07709) rose by 10.18%, priced at 37 Hong Kong dollars; the CSOP Samsung Electronics Daily (2x) Leveraged Product (07747) increased by 4.05%, priced at 82.8 Hong Kong dollars; GigaDevice Semiconductor Inc. (03986) grew by 2.2%, priced at 512 Hong Kong dollars; and Montage Technology (06809) rose by 2.23%, priced at 293.2 Hong Kong dollars. In news, overnight, storage giant SanDisk surged over 13%, driving a significant increase in U.S. stock market storage concepts. SanDisk's long-term financial goals presented during Investor Day exceeded expectations, prompting the market to reassess previous cyclical pricing logic for NAND. SanDisk anticipates that during the fiscal years 2028 to 2030, revenue will maintain mid-to-high double-digit growth; under non-GAAP terms, gross margin is expected to remain around 80%, with an operating profit margin of approximately 75%. Analysts believe the company is conveying a clear message: the growth in AI-driven storage demand is expected to significantly elevate its revenue growth and profitability over the next few years compared to the historical average levels of the traditional storage cycle. Additionally, it has been reported that SK Hynix Chairman Choi Tae-won stated that next year could become one of the most severe years for memory shortages in recent years. With the sustained explosion in AI server demand, High Bandwidth Memory (HBM) is in short supply, leading many tech giants to rush to South Korea to secure long-term agreements. Facing a flood of orders, Hynix acknowledged that production capacity is limited, and even with full efforts to expand capacity, it will be challenging to meet all customer demand.