On October 13, a report from Morgan Stanley indicated that the AI-driven storage chip supercycle continues, but the investment logic for storage stocks is changing: while tight supply and demand, price increases, and profit improvements still provide support, the significant rise in stock prices and concentrated upward revisions of earnings expectations have fully priced in optimistic forecasts, limiting further upside potential. The report states that the core contradiction is that the stronger the fundamentals, the more the risks at the cycle peak are likely to be underestimated—storage stocks often peak before profits reach their zenith, as the market tends to extrapolate current high profits, making valuations appear cheapest when the market is at its highest. Since the start of this cycle in September 2025, Asian storage stocks have risen approximately ninefold, with a market capitalization exceeding one trillion dollars, and the average consensus earnings per share for Asian storage companies has been revised up by 432%. Samsung and SK Hynix have forward price-to-earnings ratios of about 3 to 4 times, which may seem cheap but could be a valuation trap near profit peaks; to support implied price space, DRAM contract prices need to increase by about 70% month-on-month. Historically, in 2008 and 2012, storage stocks peaked about four months ahead of profit peaks, and in 2018 this extended to eight months. The report suggests that the turning point may come later, but caution is still needed regarding changes in supply and demand dynamics after 2027.