Serenity: Samsung and SK Hynix’s memory inventories have dropped below 10 days, with the global storage market set to face its tightest supply-demand balance ever in 2027.

Serenity released a report stating that Samsung and SK Hynix’s memory inventories have fallen to less than 10 days of supply, with a potential severe shortage next year. KB Securities forecasts the memory market could face "the tightest supply conditions in history" in 2027. In this regard, Serenity pointed out that KB Securities projects the proportion of memory costs in AI infrastructure spending will rise from around 40% this year to 57% next year, while TrendForce’s forecast is even higher at 68%. Meanwhile, related storage stocks have dropped roughly 38% from their highs over the past three months, and their price-to-earnings ratio has fallen to around 3 times based on next year’s expected earnings. On the NAND front, market commentary surrounding Phison also points to extremely tight supply in 2027. Serenity noted that the surge in NAND prices has forced some Chinese consumer-grade storage module makers to clear inventories, creating an opportunity for Phison to purchase stock at low prices—illustrating that localized price declines and overall supply shortages can coexist. Serenity said that against the backdrop of growing AI demand and storage’s rising cost share in AI infrastructure, South Korean storage stocks and U.S.-listed related companies including Micron (MU) and SanDisk (SNDK) may benefit from 2027’s supply-demand tightness and growth in infrastructure spending.