CITIC Securities: Continuously optimistic about the growth trend of storage innovation.

CITIC Securities research report pointed out that in the era of Agent AI, storage is the core drive of the storage industry's transition to a long-term paradigm shift. In terms of supply and demand, AI inference has led to a dramatic increase in Token consumption, followed by a linear increase in KV Cache, resulting in a mismatch between supply and demand due to the explosion in demand and original factory expansion. It is expected that the supply shortage will continue until 2027, with price increases throughout 2026. In terms of technology, in the context of extreme shortages and high costs of HBM and DRAM, manufacturers are sharing innovative NAND solutions to alleviate the pressure of memory capacity demand. We continue to be optimistic about the trend of storage innovation and growth.