Analyst: Chip prices may peak ahead of schedule within a year, DRAM and NAND prices may experience consecutive quarterly declines early next year According to a report by Golden Finance, on June 10th, a listed company recently signed a billion dollar wafer contract and disclosed that the order was "locked in quantity and locked in price". As the storage market continues to exceed supply, signing Long Term Agreements (LTAs) has become an important method for downstream manufacturers to ensure product supply. Morgan Stanley recently released a research report introducing several types of LTA contract models. The first type is a pure fixed price without advance payment, and once the market fluctuates dramatically, both parties may break the contract; The second type is fixed price+advance payment, and the contract price is usually lower than the first type; The third type is a prepayment+price elasticity mechanism, where the majority of the quantity is priced at a fixed rate, but a portion is set aside for a floating price mechanism. An executive from storage control leader Huirong Technology previously stated at an event that the supply-demand gap will widen in 2027, as this round of price increases and shortages is not simply a cyclical fluctuation, but a structural change driven by AI. Against the backdrop of the active expansion of production by Changxin and Changcun, and the decline in consumer electronics demand caused by price increases, Raymond James analyst Carl Ackerman proposed a new viewpoint: chip prices may peak earlier in less than 12 months, and dynamic random access memory (DRAM) and flash memory (NAND) prices may experience consecutive quarterly declines early next year.