The leading US memory chip stock has fallen more than 20% over the past few weeks, with its underlying fundamentals facing reassessment.

According to CCTV Finance, industry insiders said that in the memory chip sector, every time the industry enters a boom cycle, manufacturers tend to ramp up production capacity in sync, leading to a concentrated release of new capacity, plummeting prices, and the entire industry falling into losses. Subsequently, manufacturers collectively slash capital expenditures (CapEx), and when demand rebounds, another boom cycle arrives—this cycle forms the industry’s unique cyclical pattern. Since US-listed memory chip stocks hit their peak in late June, news such as Meta selling off computing power has sparked market concerns over computing power oversupply, dragging memory chip stocks into a broad correction. Data shows that leading players including SanDisk, Micron Technology, Seagate Technology, and Western Digital have all seen their stock prices drop by over 20% in the past several weeks. Analysts noted that the underlying logic supporting memory chip demand is currently facing reassessment, with the core variable being whether the technological gap between various AI large models will continue to narrow. They also pointed out that the memory chip industry is undergoing profound changes in its business model: in the past, storage was more like a commodity, with prices fluctuating with market conditions and contracts mostly being quarterly or annual; now, to secure critical supplies, cloud providers and AI data centers are increasingly signing long-term supply agreements with original manufacturers that span 3 to 5 years, include price ranges, minimum purchase quantities, and customer deposits.