Topic: The global storage industry is still facing a severe supply shortage, and AI-driven structural demand growth has not yet peaked.

BlockBeats news, July 5: In its latest report, Nomura Securities believes that the core contradiction in the current global storage industry is still severe supply shortage, and that AI-driven structural demand growth has not yet peaked. Investors’ recent concerns about oversupply are clearly overstated, and the market’s overly aggressive reaction may offer a window to reassess valuations for the storage sector.

In the report, Nomura Securities said outright that market concerns have been greatly exaggerated. The cycle for semiconductor investments to translate into actual production capacity is extremely long. South Korea’s investment plan of as much as 48,000 trillion won will need at least 5 to 10 years to be converted into actual production capacity. In addition, the pressure that high-margin HBM (high-bandwidth memory) is putting on general storage production capacity is causing the market to face a serious supply shortage.

Nomura Securities emphasized that Meta’s decision is by no means a turning point indicating a decline in AI-related hardware demand. On the contrary, due to the current shortage in computing power supply, the price trend for a single Token has been moving upward. Meta’s entry of computing power into the market is expected to help Token prices stabilize and ease downward.