Morgan Stanley Forecasts 35%-40% Storage Industry Profit Growth in 2027 Despite Near-Term Weakness

DRAM6.65%
According to Morgan Stanley's Asia-Pacific Storage Tech Brief on July 6, the storage industry approaches a peak in price-to-book ratios, inventory levels, and earnings revision breadth, which may pressure near-term stock prices. However, the AI-driven storage bull market is far from over, with industry profits expected to grow 35% to 40% in 2027. Samsung Electronics' second-quarter operating profit is estimated at approximately 8.5 trillion won, and SK Hynix at about 6.5 trillion won, both in line with market expectations. Morgan Stanley recommends seeking opportunities in DRAM and traditional storage while avoiding module manufacturers.
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