Industry insiders said that every time there is a boom in the history of the memory chip industry, manufacturers often expand production capacity simultaneously, causing new production capacity to be released centrally, prices plummeted, and the entire industry fell into losses. Afterwards, manufacturers collectively reduced capital expenditure until demand picked up, and then ushered in a boom — this cycle forms a cyclical trend unique to the industry. Since US memory chip stocks hit a high point in late June, news such as Meta's sale of computing power has raised market concerns about excess computing power, and memory chip stocks have experienced a collective correction. According to the data, industry leaders such as SanDisk, Micron, Seagate, and Western Digital have all dropped 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 being re-evaluated. The core variable is whether the technology gap between the 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 a commodity, and contracts were mostly quarterly and yearly; now, in order to guarantee critical supply, cloud vendors and AI data centers are increasingly signing long-term supply agreements with the original manufacturer for three to five years, with a price range, minimum purchase amount, and customer security deposit.

Industry insiders said that every time there is a boom in the history of the memory chip industry, manufacturers often expand production capacity simultaneously, causing new production capacity to be released centrally, prices plummeted, and the entire industry fell into losses. Afterwards, manufacturers collectively reduced capital expenditure until demand picked up, and then ushered in a boom — this cycle forms a cyclical trend unique to the industry. Since US memory chip stocks hit a high point in late June, news such as Meta's sale of computing power has raised market concerns about excess computing power, and memory chip stocks have experienced a collective correction. According to the data, industry leaders such as SanDisk, Micron, Seagate, and Western Digital have all dropped 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 being re-evaluated. The core variable is whether the technology gap between the 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 a commodity, and contracts were mostly quarterly and yearly; now, in order to guarantee critical supply, cloud vendors and AI data centers are increasingly signing long-term supply agreements with the original manufacturer for three to five years, with a price range, minimum purchase amount, and customer security deposit.