The Zhitong Finance App learned that on Monday, the storage sector strengthened collectively, with Western Digital (WDC.US) and Seagate (STX.US) rising more than 8%, SanDisk (SNDK.US) and Micron (MU.US) rising more than 5%, and SK Hynix (SKHY.US) rising more than 4%. Tech giants' AI arms race continues to heat up, free cash flow deteriorates at an accelerated pace, while memory chip makers are quietly accumulating cash. Nomura Securities believes that the current market has fundamentally misjudged the pricing of the storage sector.

Nomura pointed out in the report that the current pricing of the storage sector in the market implied the assumption that profits would peak, but the agency clearly objected to this judgment. According to the report, the shortage of storage supply will continue until 2028, long-term supply agreements are also increasing, and the large-scale shareholder return cycle of storage manufacturers has only just begun. Against the backdrop of overall pressure on the technology sector, storage is a “safe haven” worth paying more attention to.

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