According to the Zhitong Finance APP, Dongfang Securities released a research report stating that the global DRAM market size continues to expand, mainly benefiting from the global rise of generative AI trends, with optimistic expectations for AI orders, which is favorable for the storage industry chain. The storage market remains prosperous, domestic advanced storage capacity continues to expand, and AI servers and AI terminals are expected to continuously drive the growth of storage demand. Additionally, with the opportunity for domestic substitution, related targets in the storage industry chain include: GIGADEVICE (603986.SH), Purun Co., Ltd. (688766.SH), Demingli (001309.SZ), Baiwei Storage (688525.SH), Beijing Junzheng (300223.SZ), Langke Technology (300042.SZ), Dosilicon (688110.SH), Jiangbolong (301308.SZ), Hengshuo Co., Ltd. (688416.SH), Wanrun Technology (002654.SZ), Shenzhen Technology (000021.SZ), TOYOU (300302.SZ), and Juchen Co., Ltd. (688123.SH).
<h2>The main viewpoints of Dongfang Securities are as follows:</h2>
Expectations for NAND price increases in the third quarter have strengthened.
Recently, SanDisk announced a price increase of over 10% for products aimed at all channels and consumer customers, and is considering further adjustments in the coming quarters. This is SanDisk's second price increase in 2025. This move may mark the beginning of a new pricing cycle, and competitors are also expected to follow suit.
This price increase stems from a shift in the supply-demand pattern, with the supply-demand gap likely to continue to widen. On the demand side, AI applications drive strong storage demand in data centers, client-side, and mobile fields; on the supply side, the industry faces supply tightening. On one hand, NAND manufacturers are shifting production to the next-generation nodes, leading to a shortage of low-density chip supply; on the other hand, some suppliers are facing financial difficulties, making it difficult to expand production in the short term.
The global DRAM market size continues to expand, with optimistic expectations for AI orders, and continued optimism for the domestic storage industry chain.
According to the latest data from Omdia in September, the global DRAM market size in Q2 2025 increased by approximately 17% quarter-on-quarter to USD 30.9 billion, mainly benefiting from the global rise of generative AI trends, driving continuous increases in DRAM contract prices and HBM shipments. Senior executives from SK Hynix previously released optimistic news, emphasizing that &#34;AI orders will only increase,&#34; and high-speed growth is expected to continue until 2030. With the continuous growth of AI computing power demand, HBM shipment momentum is strong, and the global DRAM market size will continue to expand, benefiting the storage industry chain. With the progress of the three major manufacturers' DDR4 production cessation, the niche DRAM supply gap continues to exist, and storage manufacturers and niche storage design companies in mainland China are expected to continue to benefit. GIGADEVICE maintains a long-term close cooperation relationship with its foundry partner Changxin Storage, and as Changxin Storage accelerates its transition from DDR4/LPDDR4 to DDR5/LPDDR5 this year, manufacturers like GIGADEVICE in mainland China are expected to gain broader market space in this round of niche DRAM generational replacement.
Changxin Phase III Integrated Circuit Company established, capacity expansion is expected. Recently, Changxin Phase III (Wuhan) Integrated Circuit Co., Ltd. announced its establishment, with the legal representative being Chen Nanxiang, chairman of Yangtze Memory Technologies, and a registered capital of 20.72 billion RMB
Shareholder information shows that the company is jointly held by Yangtze Memory Technologies and Hubei Changsheng Phase III, with Yangtze Memory Technologies holding 50.2%, contributing 10.4 billion yuan; and Changsheng Phase III holding 49.8%, contributing 10.32 billion yuan. According to previous media reports, Yangtze Memory Technologies is actively expanding production, and its NAND is expected to capture about 30% of the domestic market this year, while by the end of 2026, Yangtze Memory Technologies' production capacity is expected to reach 15% of global NAND flash memory. The bank believes that the growth of the domestic storage industry chain is expected to accelerate.
Risk Warning: Downstream demand growth may be less than expected; progress of original manufacturers exiting may be slower than expected

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Dongfang Securities released a research report indicating that the global DRAM market continues to expand due to the rise of generative AI, with AI servers and terminals expected to drive storage demand growth. Domestic advanced storage capacity is expanding, accompanied by opportunities for domestic substitution, leading to an optimistic outlook for the storage industry chain. NAND prices are expected to rise in the third quarter, with SanDisk announcing a price increase of over 10%, marking the beginning of a new pricing cycle. The supply-demand pattern is shifting, with strong demand and tightening supply, resulting in a positive industry outlook

- The global DRAM market is expanding, driven by the rise of generative AI, with optimistic AI order expectations benefiting the storage industry.  
- NAND prices are expected to rise in Q3, as SanDisk announced a price increase of over 10%, indicating a potential new pricing cycle due to changing supply-demand dynamics.  
- Omdia reports a 17% quarterly increase in the global DRAM market size, reaching $30.9 billion, with strong demand from AI applications and data centers, while domestic storage manufacturers are poised to benefit from this growth.

Dongfang Securities: The storage market remains prosperous, continuing to be optimistic about the domestic storage industry chain