TechFlow News, July 11, according to CCTV Finance reports, the US memory chip stock sector encountered a collective pullback after hitting highs in late June. Industry leaders such as SanDisk, Micron Technology, Seagate Technology, and Western Digital have seen stock price declines exceeding 20% over the past few weeks. The triggering factor was Meta selling computing power, sparking market concerns about compute oversupply, while the core variable lies in whether the technical gaps between various large AI models will continue to narrow.
Industry insiders pointed out that the memory chip industry has historically had significant cyclicality—during boom times, manufacturers collectively expand production leading to plummeting prices and industry-wide losses, followed by collective contraction of capital expenditure. At the same time, the industry's business model is undergoing deep changes, with cloud vendors and AI data centers increasingly signing 3 to 5-year long-term supply agreements with original manufacturers, attached with price ranges and minimum purchase volumes, to ensure key supply chain stability.
