#我的七夕交易分享 Is the “supercycle” for storage here? SK hynix pours $38.4 billion into expansion—can you still get on board with A-share storage stocks?
Yesterday’s star performer in the A-share market was undoubtedly memory chips. ChangXin Technology rose 12%, with its total market cap returning above 4 trillion; Tongfu Microelectronics hit the daily limit, with 9.9 billion in turnover and net purchases exceeding 1.1 billion on the Dragon-Tiger List; and a host of stocks including Grinm Advanced Materials, Empyrean Technology, and WOLFSPEED Optoelectronics also hit the daily limit. The storage sector rose 4.8% overall, making it one of the market’s biggest capital magnets.
With this wave of storage stocks, many people are asking: Is this a genuine industry trend, or just another round of emotional speculation? Is it still too late to get on board?
First, let’s look at the three fundamental drivers behind this rally.
First, supply-side “capacity expansion becoming reality.” SK hynix announced a $38.4 billion investment to build a wafer fab, while Chairman Chey Tae-won once again warned that the most severe “memory shortage” would emerge next year. This is not the first time he has said it, but this time is different—the company is putting $38.4 billion of real money into capacity expansion while making the statement, showing that demand is genuinely overwhelming supply, rather than this being empty talk.
Second, AI-driven demand. At its Investor Day, SanDisk announced that demand for storage from AI data centers would surge, estimating that the enterprise data-center flash market would reach 1.2 zettabytes by 2030. AI large-model training and inference consume both storage and computing power, and this demand is genuinely rising.
Third, the transmission of the price-hike cycle. JPMorgan’s latest research report said that the effects of price increases have already spread from memory chips to semiconductor equipment and materials. Samsung, SK hynix, and SanDisk have all begun signing five-year contracts with large advance payments—effectively locking in profits for the next several years ahead of time.
With these three drivers combined, this is what the market is calling a “storage supercycle.” Moving from “expectations of price increases” to “capacity expansion becoming reality,” and from speculation on expectations to speculation on earnings, this shift is crucial.
So, can you still get on board with A-share storage stocks? There are three scenarios.
If you have no positions, don’t chase. The storage sector rose 4.8% yesterday, while ChangXin rose 12%; profit-taking pressure at elevated levels is too heavy, and today will most likely see divergence and volatility. If you rush in now, you’re buying at someone else’s cost. If you really want to participate, wait for a pullback to buy on weakness, or take a longer-term view and build your position gradually—don’t go all-in.
If you already hold positions, just hold them. As long as the logic remains intact and the trend has not deteriorated, there is no need to sell simply because prices have risen too much. This storage rally is an industry cycle, not a burst of sentiment lasting just a few days; holding core names is better than frequently trading in and out.
If you are watching from the sidelines, focus on two signals: first, the upcoming capital-expenditure announcements from giants such as SK hynix and Samsung—whether capacity expansion is still accelerating; second, whether price-increase notices continue to be issued and whether storage prices continue to rise. As long as these two signals remain in place, the trend remains intact.
The storage story is very strong, but A-share storage stocks have already posted substantial short-term gains. August is only halfway over, yet many storage stocks have already risen 30% to 50%. The more this is the case, the more you need to remember: strong fundamentals do not mean there will be no pullbacks, and a favorable trend does not mean you can buy indiscriminately. Industry cycles are long-term, but chasing highs in the short term is always risky.
Buying in batches, buying on weakness, and having the patience to hold—that is the right way to benefit from an industry cycle.
Disclaimer: This article only shares a personal market view and does not constitute any investment advice$SK Hynix
Yesterday’s star performer in the A-share market was undoubtedly memory chips. ChangXin Technology rose 12%, with its total market cap returning above 4 trillion; Tongfu Microelectronics hit the daily limit, with 9.9 billion in turnover and net purchases exceeding 1.1 billion on the Dragon-Tiger List; and a host of stocks including Grinm Advanced Materials, Empyrean Technology, and WOLFSPEED Optoelectronics also hit the daily limit. The storage sector rose 4.8% overall, making it one of the market’s biggest capital magnets.
With this wave of storage stocks, many people are asking: Is this a genuine industry trend, or just another round of emotional speculation? Is it still too late to get on board?
First, let’s look at the three fundamental drivers behind this rally.
First, supply-side “capacity expansion becoming reality.” SK hynix announced a $38.4 billion investment to build a wafer fab, while Chairman Chey Tae-won once again warned that the most severe “memory shortage” would emerge next year. This is not the first time he has said it, but this time is different—the company is putting $38.4 billion of real money into capacity expansion while making the statement, showing that demand is genuinely overwhelming supply, rather than this being empty talk.
Second, AI-driven demand. At its Investor Day, SanDisk announced that demand for storage from AI data centers would surge, estimating that the enterprise data-center flash market would reach 1.2 zettabytes by 2030. AI large-model training and inference consume both storage and computing power, and this demand is genuinely rising.
Third, the transmission of the price-hike cycle. JPMorgan’s latest research report said that the effects of price increases have already spread from memory chips to semiconductor equipment and materials. Samsung, SK hynix, and SanDisk have all begun signing five-year contracts with large advance payments—effectively locking in profits for the next several years ahead of time.
With these three drivers combined, this is what the market is calling a “storage supercycle.” Moving from “expectations of price increases” to “capacity expansion becoming reality,” and from speculation on expectations to speculation on earnings, this shift is crucial.
So, can you still get on board with A-share storage stocks? There are three scenarios.
If you have no positions, don’t chase. The storage sector rose 4.8% yesterday, while ChangXin rose 12%; profit-taking pressure at elevated levels is too heavy, and today will most likely see divergence and volatility. If you rush in now, you’re buying at someone else’s cost. If you really want to participate, wait for a pullback to buy on weakness, or take a longer-term view and build your position gradually—don’t go all-in.
If you already hold positions, just hold them. As long as the logic remains intact and the trend has not deteriorated, there is no need to sell simply because prices have risen too much. This storage rally is an industry cycle, not a burst of sentiment lasting just a few days; holding core names is better than frequently trading in and out.
If you are watching from the sidelines, focus on two signals: first, the upcoming capital-expenditure announcements from giants such as SK hynix and Samsung—whether capacity expansion is still accelerating; second, whether price-increase notices continue to be issued and whether storage prices continue to rise. As long as these two signals remain in place, the trend remains intact.
The storage story is very strong, but A-share storage stocks have already posted substantial short-term gains. August is only halfway over, yet many storage stocks have already risen 30% to 50%. The more this is the case, the more you need to remember: strong fundamentals do not mean there will be no pullbacks, and a favorable trend does not mean you can buy indiscriminately. Industry cycles are long-term, but chasing highs in the short term is always risky.
Buying in batches, buying on weakness, and having the patience to hold—that is the right way to benefit from an industry cycle.
Disclaimer: This article only shares a personal market view and does not constitute any investment advice$SK Hynix
