Analyst: Memory Chip Sector Underlying Logic Re-evaluated, Leading Stocks Drop Over 20% in Past Few Weeks

According to CCTV Finance, the US stock memory chip sector encountered a collective correction after hitting a high in late June, with industry leaders such as SanDisk, Micron Technology, Seagate Technology, and Western Digital seeing stock price declines of over 20% in the past few weeks. The triggering factor was Meta selling computing power, which sparked market concerns about a surplus in computing power, while the core variable lies in whether the technical gaps between various AI large models will continue to narrow. Industry insiders point out that the memory chip industry has historically exhibited significant cyclicality—during booms, manufacturers collectively expand production leading to plummeting prices and industry-wide losses, followed by collective contraction in capital expenditure. Meanwhile, the industry's business model is undergoing profound changes, with cloud vendors and AI data centers increasingly signing 3-to-5-year long-term supply agreements with original manufacturers, including price ranges and minimum purchase volumes, to ensure the stability of key supply chains.