Storage-related concepts are leading gains, with the Samsung Group Double Long ETF (07747) rising 3.91% and the SK Hynix Double Long ETF (07709) surging 11.48%. Public information indicates that these ETFs track South Korean semiconductor giants Samsung Electronics and SK Hynix, respectively. Both companies recently reported record-breaking first-quarter earnings. As of April 27, SK Hynix saw intraday gains exceeding 7%. Market reports suggest that the memory chip shortage is expected to persist until around 2027. While major U.S. and South Korean manufacturers are expanding DRAM production, the increase is projected to cover only about 60% of market demand. Counterpoint Research estimates that to alleviate the shortage, the industry needs to achieve an annual capacity growth of approximately 12% by 2027, but current expansion plans only target around 7.5%. Bank of America Merrill Lynch noted in a research report that after the first-quarter earnings season, major memory chip manufacturers have significantly cooled their enthusiasm for expanding HBM production. Some capital expenditure originally allocated for HBM has been shifted to traditional DRAM and even NAND. The report suggests that the investment logic in the storage industry is transitioning from an "AI premium" to a "traditional supply shortage." DRAM contract prices reached a historic high in the second quarter of 2026, with 16Gb DDR5 contract prices expected to rise by over 20% quarter-on-quarter. NAND contract prices are also at record highs and are projected to climb to around $30 in the second quarter. The exceptionally strong profitability of traditional memory is reshaping capacity allocation decisions among chip giants.
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