CITIC Securities said the June–July pullback in major global storage stocks
reflected market unwinding after peak price momentum rather than weak earnings.
Q2 results broadly met expectations; product prices remain in an upcycle and AI
is raising data-center revenue share. While price increases are moderating, the
report sees the industry in structural undersupply through 2027, providing
support for chain-wide gross margins and profitability. Suppliers are signing
3–5-year LTAs to lock in large customers; flexible pricing mechanisms and price
floors should reduce earnings volatility and lift valuations. The firm favors
exposure to HDD, DRAM and NAND and flags LTA progress and shareholder-return
signals as key follow-ups.
