NAND Flash concept stocks group Lianliang(8299) opened strongly with a limit-up, and the industry fundamentals support a positive outlook for the future.

Memory Supply Chain Tightens, Boosting Phison Shipments and Profits

The global NAND Flash market has recently experienced a rare imbalance. According to the latest research from a US-based foreign investment firm, supplier quotes are almost weekly increases, and spot prices have surged rapidly since July. The spot price for 1Tb TLC specifications has risen from $4.8 to $10.7, more than doubling, directly driving up the selling prices and revenue of Phison, a major memory controller chip manufacturer.

This supply-side tension has led to shortages and delivery delays, further strengthening Phison’s bargaining power in the industry chain. In the third quarter, shipments of main control chips increased significantly compared to the same period last year and the previous quarter, confirming strong market demand for high-end storage solutions.

Explosion of AI Server Applications, Enterprise SSD Demand Surges

The expansion of artificial intelligence inference applications is becoming a new engine driving the enterprise SSD market. Phison is seizing this opportunity by launching its latest PCIe Gen5 enterprise SSD product line at recent international tech exhibitions, while also showcasing AI PC reference designs integrating iGPU and aiDAPTIV+ technology. These products target high-value customers such as enterprise users, large-scale data centers, and device manufacturers, with some models expected to begin supply before the end of the year.

To meet the ongoing growth in demand for high-end NAND and PCIe solid-state drives, Phison is planning capacity expansion at its Zhunan plant. The plant currently employs about 3,000 staff, and the company ensures stable supply through close cooperation with supply chains and customers. CEO Pan Jiancheng emphasized at the earnings call that the current demand driven by AI is exceptionally strong, while also expressing concern over upstream capacity supply. The company will continue focusing on developing mid-to-high-end NAND solutions to avoid falling into price competition.

Stock Price Hits Limit Up at Opening, Closes Above 1100 Yuan

Benefiting from optimistic market expectations of a possible Federal Reserve rate cut, US stocks rebounded strongly the previous trading day, with the Philadelphia Semiconductor Index rising 4.63% in a single day, driving TSMC ADR up 3.48%, and NVIDIA rebounding 2%. Amid this market atmosphere, Phison(8299) performed remarkably today, opening strongly and approaching the limit-up price. Although profit-taking pressure caused the limit-up to open wider during trading, it ultimately held the 1100 yuan level, closing with a 4.27% increase for the day.

Legal Case Referred for Re-trial, No Impact on Company Operations

A new development has emerged in the highly watched case of the dismissal of Phison’s former chairman. The Supreme Court recently ruled to revoke the previous appellate court’s decision and remanded the case for re-trial. This lawsuit originated from the Securities Investor and Futures Traders Protection Act in 2019, initiated by the Securities Investor Protection Center, claiming Mr. Pan Jiancheng was unfit for the director position. After the appellate court’s decision was revoked, the dismissal of the director remains undecided, and the case will be re-examined by the High Court. Phison emphasizes that the company’s operations have remained normal throughout the litigation and that the case has no impact on its financial or business performance.

Foreign Investors Optimistic About Future, NAND Flash Concept Stocks Maintain ‘Overweight’ Rating

Foreign institutional analysts believe that Phison, as a representative of NAND Flash concept stocks, is experiencing rapid profit growth supported by the cyclical rise in memory prices and AI demand. Foreign investors continue to assign an “Overweight” investment rating, maintaining a positive outlook on the company’s future development, reflecting investor confidence in its growth potential.