Rising Against the Trend! Storage Chip Stocks Show Early Market Movement, 19 Stocks Expected to Double Net Profit

On the morning of February 13, A-shares experienced a slight pullback, with the storage chip concept opening lower and then rising against the trend. By the morning close, the sector had increased by 1.07%, ranking among the top market gainers. In individual stocks, Shenzhen Tech, Jingce Electronic, rose over 8%, Jingyi Equipment over 7%, Langke Technology over 6%, ShenKangjia A over 5%, YingTang Zhikong, Jingzhida, Liyang Chips over 4%, and Demingli, Jiangbolong, BGI Tian, ShenKeda, Jingrui Electric Materials over 3%.

Manufacturer Profitability May Reach Record Highs

According to recent data from Counterpoint’s “Memory Price Tracking Report for February,” memory prices are expected to increase by 80%–90% quarter-over-quarter by Q1 2026. The main driver of this round of price hikes is the sharp rise in general-purpose server DRAM prices. For example, the contract price for 64GB RDIMM has surged from $450 in Q4 last year to over $900 in Q1, with expectations to break the $1,000 mark in Q2.

Counterpoint senior analyst Jeongku Choi stated, “Profitability in the memory industry is expected to reach unprecedented levels. In Q4 2025, the operating profit margin for DRAM reached the 60% range, surpassing HBM for the first time. In Q1 2026, DRAM profit margins are expected to break through historical peaks for the first time.”

Additionally, TrendForce’s latest data shows that driven by the AI wave, both memory and wafer foundry output values will hit new highs in 2026. The memory industry’s output value has expanded significantly to $551.6 billion due to tight supply and soaring prices. Although wafer foundry output also reached a new high of $218.7 billion, the memory output value has already surpassed twice that of wafer foundries.

TrendForce states that as inference AI applications expand, market demand for high-performance storage devices exceeds expectations. Major North American CSPs have begun aggressive procurement since late 2025, triggering a surge in enterprise SSD orders. With ongoing supply shortages, buyers are stockpiling aggressively to replenish inventories early, pushing enterprise SSD prices in Q1 2026 up by 53%–58% quarter-over-quarter, setting a new quarterly growth record.

Galaxy Securities pointed out that in January, the storage market continued its strong upward trend since Q4 2025, with DRAM and NAND flash prices rising beyond expectations. Key factors driving price increases include explosive demand for HBM in AI servers, increased capital expenditure in data centers, and structural capacity adjustments. The supply-demand gap continues to widen, and this price hike cycle is expected to last until mid-2026. Currently, this marks a new starting point for the next cycle in the storage chip sector, with rapid growth in AI server demand and domestic substitution creating investment opportunities in related Chinese storage industry listed companies.

19 Stocks Expected to Double Net Profit Year-over-Year

Guojin Securities states that if global supply and demand imbalance is the “background” of this super cycle, then the accelerated breakthrough of domestic substitution is the “fuse” igniting the A-share storage sector. The rise of domestic storage has created a “industry chain resonance.” As manufacturers like Changxin and Yangtze Memory expand production, domestic semiconductor equipment companies are experiencing a surge in orders.

Data shows that in the latest capacity expansion at SMIC, procurement of domestic equipment has exceeded 35%, doubling from 18% in 2023. North Micro’s core equipment supplier, North China Innovation, holds a 45% market share, with over 2.5 billion yuan in new orders in 2025; Micro’s etching equipment has also successfully entered storage production lines, with a market share exceeding 35%. This “original equipment expansion—equipment benefit” transmission chain has made the domestic storage industry chain the biggest winner in this super cycle.

In the A-share market, storage chip concept stocks performed well overall in 2025, with stock prices also showing strong performance. Among the 71 storage chip concept stocks with disclosed 2025 earnings forecasts, 34 are expected to see net profit attributable to parent increase by over 50% year-over-year, and 19 are expected to double their growth rate. Regarding stock prices, 61 of these 71 stocks have risen this year, accounting for 86%, with a median increase of 20.33%.

Specifically, Beiwei Storage is the fastest-growing, with an estimated net profit attributable to parent of 1 billion yuan in 2025, up 520% year-over-year, and its stock price has already increased by over 45% this year. Next is Shangluo Electronics, with an expected net profit of 315 million yuan, up 345%, and a stock price increase of over 20%. Jintaiyang, Jiangbolong, and Changchuan Technology are all expected to see net profit growth of over 200% in 2025, with stock price increases ranging from 24% to 57% this year.

(Source: Oriental Wealth Research Center)