Bloomberg: Storage Bull Market Likely to Continue Until 2027, but Steepest Price Surge Has Passed

BlockBeats News, July 8th - Wall Street investment bank Bernstein stated in its global storage monthly tracking report released on July 8th that the June DRAM contract price continued to rise month-over-month, implying about a 74% increase in the second quarter of 2026 compared to the first quarter. The server and mobile demand remained the key drivers, with the Server DRAM price in the second quarter expected to increase by around 60% to 67%, and Mobile DRAM close to 80%.

The spot market also showed tight supply. In June, PC DRAM spot prices rose by 5.6% to 11.5% month-over-month, and Server DRAM increased by 6.1% to 26.4%. The report mentioned that Server DDR5 performance was particularly strong, with spot prices significantly higher than contract prices, indicating that AI and cloud service providers are still absorbing the additional capacity shift towards the server end from suppliers.

However, Bernstein also noted that the pace of price increases is expected to significantly slow down in the third quarter. TrendForce predicts that the price increase for traditional DRAM in the third quarter will decrease to 13% to 18%, lower than the steep increase in the second quarter. PC, mobile, and consumer electronics customers are reducing configurations or adjusting procurement pace. While demand destruction has not fully materialized, the report believes it will eventually occur.

The situation for NAND is more mixed. In June, NAND wafer spot prices instead fell by 3% to 4%, while wafer contract prices rose slightly by 0.3% to 3.7%. However, the strong price increase in mobile NAND and SSD will still drive the overall NAND contract price to rise by about 60% in the second quarter. Bernstein stated that SSD and mobile storage price increases could reach 70% to 80%, offsetting the weakness at the wafer end.

The key variable of this storage cycle remains AI. Cloud service providers and server customers continue to prioritize locking in supply, with some U.S. CSPs having completed long-term agreement negotiations, while Chinese CSPs are still in negotiations. Long-term agreements help smooth out future price declines but may also limit the space for some suppliers to continue raising prices.

In investment conclusions, Bernstein maintains a positive rating on Samsung, SK Hynix, Micron, and SanDisk, while remaining cautious on Kioxia. The report suggests that storage prices may remain strong until 2027, but from the second half of 2027 to 2028, as long-term agreements take effect and new capacity comes online, prices will gradually normalize.