Memory chip stocks have fallen more than 20% in the past few weeks, and the underlying logic is facing revaluation
Southern Finance reported on July 11 that SK Hynix was listed in the United States, attracting market attention to the memory chip sector of the US stock market. Since the beginning of this year, this sector first rose strongly, and then suffered a collective correction. It has also been experiencing violent fluctuations this week.
Southern Finance reported on July 11 that SK Hynix was listed in the United States, attracting market attention to the memory chip sector of the US stock market. Since the beginning of this year, this sector first rose strongly, and then suffered a collective correction. It has also been experiencing violent fluctuations this week. What is the core reason? What are the potential risks behind it? Industry insiders said that whenever the memory chip industry experienced good times in history, manufacturers tended to expand production capacity simultaneously, resulting in a concentrated release of new production capacity, plummeting prices, and a plunge in the entire industry. Subsequently, manufacturers collectively reduced capital expenditures, and when demand picked up, good times came again. This cycle constitutes the unique cyclicality of the industry. Since U.S. memory chip stocks hit a high in late June, news such as Meta's sale of computing power has triggered market concerns about excess computing power, and memory chip stocks have suffered a collective correction. Data shows that the stock prices of industry leaders such as SanDisk, Micron Technology, Seagate Technology, and Western Digital have all fallen by more than 20% in the past few weeks. Analysts pointed out that the underlying logic of the industry currently supporting the demand for memory chips is facing re-evaluation, and the core variable is whether the technological gap between major AI models will continue to narrow. Analysts also pointed out that the memory chip industry is undergoing a deep change in the business model: In the past, storage was more like commodities, with prices following the market, and contracts were mostly quarterly and annual. Now, in order to ensure key supplies, cloud vendors and AI data centers are increasingly signing long-term supply agreements with original manufacturers for three to five years, with price ranges, minimum purchase quantities, and customer deposits. (CCTV Finance) (