CITIC Securities: Similar to the storage super cycle, this round of electronic cloth cycle may be more intense.

Guosen Securities research report believes that the upward logic of this storage cycle is driven by supply optimization and AI demand. Storage manufacturers are focusing on high-profit products, compressing the supply of mainstream storage, causing prices to rise rapidly, and bringing greater price elasticity. According to Bloomberg, the highest increase in mainstream DRAM/NAND spot prices reached 223%, lasting 12-18 months. Referring to storage, this round of electronic fabric demand cycle is mainly driven by AI demand, with stronger growth and sustainability, and more demand for special electronic fabrics from AI. In the super cycle, the research report believes that 7628 electronic cloth is also expected to reach a new price high. Considering the continued rapid growth of AI demand, the research report predicts that the demand for special fabrics will increase by 100% by 2026. Due to the bottleneck in Toyota's weaving machine capacity, the research report believes that the demand for special electronic fabrics will still be in short supply in 2026, and companies will have strong motivation to continue to shift production to special fabrics driven by marginal profits.