Investment Bank Research Brief

2026-07-14·ima-daily5min-0714-12-9140b0f02d

Street Signal | Investment Bank Research Brief

The performance in 2Q26 exceeded expectations, with ASP (average selling price) soaring 50%+ month-on-month, and the proportion of server sales rising to more than 20%. AI demand, memory supply shortages and long-term agreements (LTA) are the core supporting its growth.

The company plans to invest US$16 billion in production capacity expansion from 2027 to 2029, which indicates that both volume and price will rise in the next few years. The market may only see the short-term cycle and ignore the long-term prosperity cycle brought about by the improvement of supply and demand structure.

One-sentence conclusion: Nanya Technology benefits from the AI-driven niche DRAM supply and demand imbalance. The length and magnitude of its upward cycle may far exceed market expectations, and there is room for significant improvement in both performance and valuation.

Positive/negative: Positive for Nanya Technology (2408.TW) and the niche DRAM industry chain. Although the stock price has risen sharply, the market may not have enough understanding of the length of the cycle, and the expectation that the upward cycle will extend to 2028 has not yet been fully priced in. Catalysts:

1) Guidance on whether 3Q26 performance can achieve a quarter-on-quarter growth of more than 25%; 2) 2027-2029 production capacity expansion plan and customer LTA signing status;

3) Monthly price trends of niche DRAM such as DDR4/DDR3.

Full text

Investment Bank Research Brief

The performance in 2Q26 exceeded expectations, with ASP (average selling price) soaring 50%+ month-on-month, and the proportion of server sales rising to more than 20%.

The performance in 2Q26 exceeded expectations, with ASP (average selling price) soaring 50%+ month-on-month, and the proportion of server sales rising to more than 20%. AI demand, memory supply shortages and long-term agreements (LTA) are the core supporting its growth. The company plans to invest US$16 billion in production capacity expansion from 2027 to 2029, which indicates that both volume and price will rise in the next few years. The market may only see the short-term cycle and ignore the long-term prosperity cycle brought about by the improvement of supply and demand structure. One-sentence conclusion: Nanya Technology benefits from the AI-driven niche DRAM supply and demand imbalance. The length and magnitude of its upward cycle may far exceed market expectations, and there is room for significant improvement in both performance and valuation. Positive/negative: Positive for Nanya Technology (2408.TW) and the niche DRAM industry chain. Although the stock price has risen sharply, the market may not have enough understanding of the length of the cycle, and the expectation that the upward cycle will extend to 2028 has not yet been fully priced in. Catalysts: 1) Guidance on whether 3Q26 performance can achieve a quarter-on-quarter growth of more than 25%; 2) 2027-2029 production capacity expansion plan and customer LTA signing status; 3) Monthly price trends of niche DRAM such as DDR4/DDR3.