Huatai Securities: If the reports of Nvidia chips cutting memory are true, short-term pullbacks may provide a good opportunity for re-balancing high-crowded trades.

Huatai Securities research report stated that SemiAnalysis reported on June 4th that Nvidia plans to halve the CPU-side memory usage of the new generation AI server VeraRubinNVL72, which is scheduled to be released in 3Q26. Although the report indicated that this adjustment was driven by tight supply from the three major memory manufacturers, it still raised concerns among investors about the peak demand for AI storage. On June 5th, US stock storage sectors such as Micron, SanDisk, Western Digital, and Seagate all fell. Based on our analysis of the relevant report, we believe that: 1) The downgrade is essentially a "consequence" of the allocation of production capacity by original manufacturers under the hard constraints on the supply side, rather than a "cause" of weakening computing power demand. If the downgrade occurs, it directly affects global DRAM demand by approximately 1.6%/4.2% in 2026/2027 respectively; 2) If the downgrade is confirmed, we still expect the storage supply-demand gap in 2027 to decrease by approximately -7% before the downgrade and -3% after the downgrade, with the storage uptrend cycle unchanged; 3) We believe that the short-term correction provides a good opportunity for high-crowded trades to rebalance.