Nomura Securities: Global Storage Industry Faces Supply Shortage, AI-Driven Demand Growth Unabated

According to Nomura Securities, as of July 5, the global storage industry's core challenge remains severe supply shortage, with AI-driven structural demand growth not yet peaking. While investor concerns about oversupply are understandable, they are markedly exaggerated, and market overreaction may provide a valuation reassessment window for the storage sector.

Nomura noted that market worries are severely overstated. The conversion of semiconductor investments into actual production capacity requires an extremely long timeline; South Korea's 4,800 trillion won investment plan alone needs 5-10 years to materialize into production. Additionally, high-margin HBM (high-bandwidth memory) is squeezing general-purpose storage capacity, creating critical supply shortages.