Bernstein: Storage Bull Market Could Last Until 2027, Rapid Price Surge Phase Has Ended

Odaily Odaily reports that Wall Street investment bank Bernstein has released its monthly report on the storage industry, indicating that the current storage bull market could extend into 2027, but the phase of rapid price increases has passed. Data shows that the average DRAM price surged 74% quarter-over-quarter in Q2, with strong support from server and mobile demand. Server DRAM and Mobile DRAM saw increases of over 60% and close to 80%, respectively; spot market server DDR5 supply remains tight. The institution forecasts that the DRAM price increase will moderate to 13%-18% in Q3, as weakening end-consumer electronics demand may gradually pressure the market.

The NAND market shows diverging trends, with wafer spot prices weakening. However, price increases for mobile and SSD storage drove overall contract prices up by 60%. Long-term contract lock-ins by AI cloud providers are a key cyclical variable. The investment bank maintains positive ratings on Samsung, SK Hynix, Micron, and SanDisk, while taking a cautious view on Kioxia. From the second half of 2027 into 2028, as capacity comes online and long-term contracts are fulfilled, storage prices are expected to gradually return to normal levels.