The UBS analyst team has highlighted that, in the near term, investors should keep a close eye on Seagate and Western Digital, the two dominant players in the HDD (Hard Disk Drive) sector. These companies are seen as key drivers in the short-term trading trends within the storage market cycle. Looking ahead to the medium and long term, achieving excess returns will largely depend on the dynamics of the supply-demand gap and pricing power within the Memory sector. This encompasses not only NAND and HBM (High Bandwidth Memory) controller ecosystems but also high-end DDR (Double Data Rate) and enterprise-grade SSDs (Solid State Drives) designed for data centers.

The ongoing expansion of AI data centers is further widening the supply-demand disparity between HBM and traditional DRAM (Dynamic Random Access Memory) as well as NAND. The pricing and supply strategies, primarily dictated by the three leading memory chip manufacturers, are expected to exacerbate this imbalance even further. Consequently, it is projected that the tight supply-demand conditions in the memory chip market may not see any meaningful relief until at least 2028.