TechFlow news, July 3: According to TechFlow Research, Morgan Stanley released a NAND industry outlook report on July 2, estimating AI-related NAND demand year-over-year growth in 2027 to be approximately 60%, creating a 9% supply-demand gap that is expected to persist until 2027. The report also noted that after continuous price increases in the second quarter, actual orders on the consumer electronics side decreased, inventory at module manufacturers and distributors rose, consumer-grade product pricing may have peaked, while server-side demand remains strong supported by long-term supply agreements.
In this update, Longsys price target was raised from 300 RMB to 673 RMB, Phison Electronics from 2248 TWD to 2588 TWD, with both ratings maintained at Neutral; Silicon Motion price target was raised from 155 USD to 400 USD, with the rating also upgraded due to expansion in enterprise SSD and AI server boot drive business. Morgan Stanley believes the key variable determining whether supply and demand will tighten in 2028 is the pace of capacity expansion by Chinese manufacturer YMTC.
