Enterprise SSD

Morgan Stanle

2026-08-03 06:56:43

Morgan Stanley says data center HDD and SSD demand stays strong, with enterprise SSD capacity seen doubling by 2026

Morgan Stanley said in a report released on Aug. 3 that June HDD and SSD data continued to point to strong demand from data centers. Citing TSR estimates, the bank said enterprise SSD shipment capacity for data center use is projected to reach 525 exabytes in 2026, up 100% year over year, while nearline HDD shipment capacity is expected to reach 1,845 exabytes, up 30.4%. The report said June data center enterprise SSD shipment capacity came in at 46.33 exabytes, rising 124.5% from a year earlier and 12.0% from the prior month. Unit shipments of enterprise SSDs reached 6.35 million, up 41.1% year over year and 8.9% month over month. Morgan Stanley said the mix shift toward higher-capacity products should keep shipment-capacity growth ahead of unit growth. On the HDD side, June nearline HDD production totaled 7.03 million units, up 12.3% year over year and down 0.6% from the previous month. TSR expects nearline HDD production to reach 84.39 million units in 2026, up 12.8%. The report also warned that further nearline HDD output increases could be constrained by head supply and testing capacity. Overall, Morgan Stanley said AI spending and data center capital expenditure are still driving storage-capacity demand, while supply-chain bottlenecks are spreading from end devices to key component links.

1890

SK Hynix

2026-07-30 06:22:56

SK Hynix posts record profit, but the stock sell-off shows investors want more than strong numbers

SK Hynix reported record second-quarter results, with revenue at KRW 79.32 trillion and operating profit at KRW 60.54 trillion, up 257% and 557% year over year, while operating margin climbed to 76%. Even so, the stock fell more than 15% intraday after the earnings release because both revenue and operating profit came in below market expectations of roughly KRW 84 trillion and KRW 64 trillion. The company said part of its high-value shipments slipped into the second half, suggesting a timing issue rather than a collapse in demand. Management also said HBM4 began mass production shipments in the second quarter, with larger volumes due in the second half, while around 10 customers have completed negotiations on long-term supply agreements that typically run for five years. The report points to broader AI memory demand beyond HBM alone, spanning AI server DRAM, enterprise SSDs and advanced NAND. At the same time, investors are shifting their focus from headline profit growth to a harder question: how long can this memory upcycle last, and will higher capital spending eventually recreate the industry’s familiar oversupply problem?

1900

SK Hynix

2026-07-29 01:27:36

SK Hynix posts record Q2 profit but misses estimates, says HBM4 shipments will ramp in second half

SK Hynix reported record second-quarter revenue and operating profit after the U.S. market closed on July 28, but both figures came in below analyst estimates, leaving investors focused on whether AI-driven memory demand can keep supporting elevated valuations. The company said operating profit rose 557% year over year to KRW 60.5 trillion, while revenue increased 257% to KRW 79.3 trillion, both quarterly highs. Consensus had been around KRW 64.2 trillion for operating profit and KRW 83.9 trillion for revenue. The company said it remains positive on demand and has finalized long-term agreements with about 10 customers, while continuing talks with other major industry clients. It added that HBM4 has reached the operating speeds customers require and began mass shipments in the second quarter, with output set to expand further in the second half. HBM4E samples were also sent to major customers in the first half. The report pointed to three reasons for the earnings shortfall versus expectations: a high mix of HBM sales, slower quarter-on-quarter price increases for commodity memory, and long-term supply agreements that limited upside from spot price gains. SK Hynix also disclosed stronger cash flow, higher cash holdings, lower debt, and plans to keep raising capital spending as it pushes ahead with M15X, the Yongin clean room, advanced packaging, and NAND capacity projects.

550

AI servers

2026-07-03 23:01:06

Morgan Stanley Raises SIMO Target as AI Servers Reshape the NAND Cycle

Morgan Stanley’s latest report argues that the NAND market is no longer driven mainly by smartphones, PCs, and consumer SSD inventory swings. Instead, AI servers, enterprise SSDs, boot drives, and long-term cloud procurement are becoming the dominant forces behind the next cycle. The bank raised Silicon Motion’s target price from $155 to $400, while also lifting targets for Longsys and Phison, though both remain rated Equal Weight. Its supply-demand model points to a 2% NAND surplus in 2025, followed by a 15% shortage in 2026 and a 9% shortage in 2027. By then, AI-related NAND demand is projected to reach 609EB, up 60% year over year and representing 41% of total NAND demand. The report also highlights clear pricing divergence: enterprise TLC SSDs are seeing much stronger price increases than consumer NAND. For SIMO, the main thesis centers on enterprise SSD controllers and AI boot drive modules. Still, the report stresses that the bullish case depends on execution, sustained AI server demand, and controlled supply growth. The bigger uncertainty lies in 2028, when YMTC capacity expansion and slower AI growth could shift the market back toward balance or oversupply.

680

AI servers

2026-07-03 21:01:27

Morgan Stanley Raises SIMO Target as AI Servers Reshape the NAND Cycle

Morgan Stanley’s latest report argues that the NAND market is entering a structurally different cycle, driven less by smartphones and PCs and increasingly by AI servers, enterprise SSDs, AI boot drives, and long-term cloud procurement. The bank raised Silicon Motion’s target price from $155 to $400, while also lifting targets for Longsys and Phison. However, it kept Equal Weight ratings on Longsys and Phison, signaling that not every module maker will benefit equally from the upcycle. The report forecasts global NAND moving from roughly 2% oversupply in 2025 to a 15% shortage in 2026 and a 9% shortage in 2027, with AI-related NAND demand expected to reach 609 EB in 2027, or 41% of total demand. Channel checks already show stronger pricing in data-center-linked products, especially TLC enterprise SSDs, than in consumer NAND. For SIMO, Morgan Stanley sees enterprise SSD controllers and AI boot drive modules as the key earnings drivers. The larger debate now is not simply whether SSD prices will rise, but whether AI demand can absorb future capacity additions through 2028, especially under different YMTC expansion scenarios.

700

AI servers

2026-07-03 20:01:01

Morgan Stanley Lifts SIMO to $400 as AI Servers Reshape the NAND Cycle

Morgan Stanley has sharply raised its price targets on key storage names, arguing that AI infrastructure is fundamentally changing the NAND demand cycle. The most aggressive move was on Silicon Motion, whose target was lifted from $155 to $400, based on 23x expected 2027 EPS and expectations that revenue will hit a record in 2026. Longsys and Phison also saw higher targets, though both remain rated Equal Weight, highlighting that the AI storage upcycle is unlikely to benefit all module vendors equally. The report’s main thesis is that AI-driven NAND demand will extend through 2027. Global NAND supply-demand is projected to remain about 2% oversupplied in 2025, then swing to a 15% shortage in 2026 and still show a 9% deficit in 2027. Total demand is estimated at 1,111 EB, 1,250 EB, and 1,484 EB for 2025-2027, versus supply of 1,128 EB, 1,058 EB, and 1,347 EB. The key driver is not a broad recovery in smartphones or PCs, but rising demand from AI servers, cloud SSD procurement, enterprise storage, and boot drives. Pricing data already reflects this divergence. Channel checks for 3Q26 show TLC enterprise SSD prices up about 30% quarter-on-quarter, server DRAM up 20%, and legacy DRAM such as DDR3/DDR4 up 30%-40%, while consumer NAND pricing remains more constrained. Morgan Stanley sees SIMO as especially well positioned through enterprise SSD controllers and AI boot drive modules, but also warns that the bullish outlook depends on successful ramp-up, customer adoption, and sustained AI server demand. Looking further out, 2028 remains the key risk window, with YMTC capacity expansion and AI demand growth determining whether shortages persist or the market swings back into oversupply.

650

AI servers

2026-07-03 15:31:12

Morgan Stanley Raises SIMO Target to $400 as AI Servers Reshape the NAND Cycle

Morgan Stanley’s latest report argues that the NAND market is entering a structurally different cycle, driven less by smartphones and PCs and more by AI servers, enterprise SSDs, boot drives, and long-term cloud procurement. The most aggressive move in the report is Silicon Motion, whose price target was raised from $155 to $400, based on 23x estimated 2027 EPS and expectations that revenue will hit a record high in 2026. Longsys and Phison also saw target increases, but their ratings remain Equal Weight, reflecting more limited upside due to supply allocation constraints and customer mix. The bank expects the global NAND market to move from roughly 2% oversupply in 2025 to a 15% shortage in 2026, followed by a 9% shortage in 2027. Total demand is projected at 1111/1250/1484 EB for 2025-2027, versus supply of 1128/1058/1347 EB. By 2027, AI-related NAND demand is expected to grow 60% year over year to 609 EB, accounting for 41% of global demand. Morgan Stanley’s bullish view on SIMO centers on two businesses: enterprise SSD controllers and AI boot drive modules. MonTitan is expected to contribute 5%, 13%, and 19% of revenue in 2026, 2027, and 2028, while boot drive modules could contribute 15% and 21% in 2026 and 2027. Still, the report also highlights a key boundary: by 2028, YMTC capacity expansion and slower AI growth could shift the market from shortage back toward balance or oversupply.

690

Morgan Stanle

2026-07-03 13:31:25

Morgan Stanley Lifts SIMO Target to $400 as AI Servers Reshape the NAND Cycle

Morgan Stanley’s latest report argues that the NAND market is being structurally reshaped by AI infrastructure rather than by a broad recovery in smartphones and PCs. The bank sharply raised Silicon Motion’s target price from $155 to $400, while also lifting targets for Longsys and Phison, though the latter two remain rated Equal Weight. The core thesis is that AI servers, enterprise SSDs, AI boot drives, and long-term cloud procurement contracts are creating a supply-demand gap that could persist through 2027. According to the report, the global NAND market may remain in a modest 2% surplus in 2025, but could swing to a 15% shortage in 2026 and still face a 9% deficit in 2027. Total NAND demand is projected at 1111/1250/1484 EB for 2025-2027, versus supply of 1128/1058/1347 EB. By 2027, AI-related NAND demand is expected to rise 60% year over year to 609EB, accounting for 41% of total market demand. Morgan Stanley sees Silicon Motion as especially well positioned through its enterprise SSD controller business and AI boot drive modules. It expects MonTitan enterprise SSD products to contribute 5%, 13%, and 19% of revenue in 2026, 2027, and 2028, respectively, while boot drive modules could contribute 15% and 21% in 2026 and 2027. Still, the bank warns that 2028 may become the key turning point: if YMTC capacity expands from around 310kwpm to 470kwpm while AI demand growth slows, the market could move from shortage back toward balance or oversupply.

680