Bernstein raises target prices for Samsung, Hynix, and Micron, warning that storage price hikes are driving up AI costs BlockBeats News: On June 22nd, Wall Street investment bank Bernstein stated that the price increase of storage chips is spreading from consumer electronics to AI infrastructure, and may force large cloud vendors to reassess the return on investment of AI data centers. In a report released on June 22, Bernstein stated that the price of traditional DRAM has increased by about 4.5 times since the third quarter of 2025, while HBM has not yet been adjusted synchronously due to the annual contract lock up. This has resulted in significantly higher unit wafer revenue and gross profit for traditional DRAM compared to HBM, prompting storage vendors to renegotiate HBM prices with GPU/XPU vendors for 2027. The institution predicts that HBM prices may increase by 2 to 2.5 times next year. The report suggests that the price increase of HBM may be further amplified by AI accelerator manufacturers. Taking Nvidia as an example, if it wants to maintain a 75% gross profit margin after HBM costs increase, it may need to pass on the related costs to customers by approximately four times. Bernstein estimates that in the Vera Rubin NVL72 rack, HBM price increases and markups may increase the total capital expenditure of AI data centers by approximately 15%; In addition to the price increase of traditional DRAM and NAND, the total impact is close to 30%. Bernstein believes that cloud providers will continue to invest in AI, but rising costs mean that "recalibration" is inevitable, and supply chain pricing, customer cost sharing, and even token prices may face adjustments. The agency maintains the "outperforming" ratings of Samsung Electronics, SK Hynix, and Micron, and significantly increases target prices: Samsung's common stock has been raised from KRW 225000 to KRW 440000, SK Hynix from KRW 1150000 to KRW 3300000, and Micron from USD 510 to USD 1300. Bernstein's 2027 EPS forecasts for the three companies are approximately 26%, 32%, and 38% higher than the market consensus expectations, respectively. The report also suggests that Samsung may have taken the lead in HBM4 technology and is expected to expand its market share. However, an increase in the proportion of HBM does not necessarily lead to higher profits, as traditional DRAM currently has stronger profitability. Bernstein maintains KIOXIA's' underperforming the market 'rating due to its lack of HBM business; At the same time, it is reiterated that MediaTek is "outperforming the market" and believes that if cloud providers turn to directly purchasing HBM to avoid GPU/XPU manufacturers raising prices on HBM, Asian ASIC service providers may benefit. The report warns that there may still be a cyclical downturn in 2028. But even if prices normalize, Bernstein predicts that the gross profit margin of the DRAM industry may still remain at around 70%, higher than most historical upward cycle peaks.