Baiwei Storage signs a $1.5 billion procurement deal, with multiple storage chip concept stocks rising over 10%

March 25, the storage chip concept saw repeated bursts of activity. Shangluo Electronics, Jintaiyang, and Bairu Storage each rose by more than 10%, while Sifu Co., Ltd. capped the daily limit. Innovent Data, Jiangfeng Electronics, United Transport Technology, and others also followed higher.

On the news front, on the evening of March 24, Bairu Storage issued an announcement stating that the company has entered into a daily operating procurement contract with a certain storage original manufacturer. Under the contract, the company agrees to purchase a specific type of storage wafers from that supplier according to the quantities, prices, and time specified in the contract. The total committed purchase amount under the contract is $1.5 billion. The committed procurement period totals 24 months. The procurement schedule is evenly distributed across eight quarters. The purchase price is locked. From the second quarter of 2026 through the first quarter of 2028.

According to the announcement, the total committed purchase amount exceeds 50% of the company’s most recent fiscal year’s audited operating revenue and total assets. If the contract is carried out smoothly, it will help strengthen the stability of the company’s long-term supply of storage wafers and reduce the impact of storage wafer price fluctuations on costs.

Also, according to Caixin Securities, a well-known Wall Street investment bank, Wedbush, recently pointed out that surging memory demand driven by the buildout of AI infrastructure, along with supply tightness, will push the price increases of some memory products to exceed 100%.

In a report published on Monday, a Wedbush analyst said that DRAM and NAND storage prices are rising rapidly. Compared with the fourth quarter of 2025, it is expected that price increases in the first half of 2026 will reach “three-digit” levels. Among them, the expected DRAM price increase is in the range of 130% to 150%, and the NAND increase is also close to this level, indicating that the storage market is entering a new round of strong cycle.

Guojin Securities noted that demand has exploded, and compute-storage has entered a period of high optimism. The global rollout of generative AI and industry large models is accelerating. Corporate-level AI computing and data storage demand continues to expand. Cloud providers’ resources are in short supply relative to demand. As a domestic leading cloud service provider, Alibaba Cloud’s price-hike actions carry industry-leading “signal” significance, and are expected to drive price transmission across the whole industry. The compute and storage sectors may see a “Davis double-click” window. With supply-chain costs under pressure, price increases open up profitability leverage. Along the compute and storage industry chain upstream (such as GPUs, storage chips, optical modules, etc.), costs remain under pressure due to capacity constraints and raw material price increases. This round of product price increases will effectively ease enterprise cost pressure, and profitability leverage will be gradually released. Leading companies with technology barriers and scale advantages will benefit first. Domestic innovation is accelerating, and domestic self-controllable vendors are seizing opportunities. Disruptions to overseas compute-supply chains are increasing; domestic cloud providers and compute enterprises are accelerating efforts toward self-controllability. Demand in areas such as domestically produced servers, storage chips, and IDCs continues to rise. Companies with full-industry-chain layouts will take the initiative in the wave of domestic innovation.

Orient Securities said that AI demand is leading, and the NAND supply remains tight. Relevant targets include: domestic storage chip design companies Zhaoyi Innovation, Primarion Co., Ltd., Juchen Shares, Dongxin Shares, Beijing Junzheng, Hengshuo Shares, etc.; domestic storage module makers Jiangbo Long, Demingli, Bairu Storage, etc.; companies benefiting from storage technology iteration such as Lanci Technology, Linke Technology, and Aojie Technology; among semiconductor equipment companies, such as Micronet, Jingzhida, Beijing Instruments & Equipment, TuoJing Technology, Northern Huachuang, etc.; domestic semiconductor packaging and testing companies such as Shenkeji, Huicheng Shares, and Tongfu Microelectronics; and supporting logic chip makers such as GUC Integrated.

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