On August 12, a research report from CITIC Securities highlighted that the share prices of leading global memory companies underwent a correction from June to July. This adjustment was not a result of poor performance but rather a concentrated expression of market anxieties following the peak of price hike acceleration. Generally speaking, these companies' performance in the second quarter lived up to expectations, with products remaining in a price increase cycle and AI technology continuously fueling an uptick in the revenue proportion from data centers. Looking into the future, although the pace of price hikes for memory products may decelerate, it is anticipated that the memory industry will still encounter a supply deficit by 2027, offering robust support for the gross profit margins and profitability of companies along the industry chain. Moreover, concerning the long-term agreements (LTAs) that have attracted significant market interest, relevant companies are securing demand from major clients through LTAs spanning 3 to 5 years. Flexible pricing mechanisms and price floors are also projected to mitigate profit volatility and bolster company valuations. CITIC Securities advises keeping a close eye on memory sectors such as HDD, DRAM, and NAND.