STOCKS | U.S. Memory Chip Stocks Fall Over 20% in Recent Weeks as Demand Thesis Is Reassessed

U.S.-listed memory chip stocks have fallen more than 20% over the past several weeks after a sector-wide pullback since late June highs. According to Jin10, industry sources said the memory chip sector has historically followed a distinct cycle: during upswings, manufacturers often expand capacity in tandem, leading to a concentrated release of new supply, sharp price declines, and industry-wide losses; companies then collectively cut capital spending, and the next demand recovery brings another upswing. The report said that since the sector hit a peak in late June, news such as Meta selling computing power has fueled market concerns about a potential oversupply of computing capacity, triggering a broad correction in memory chip names. Data cited in the report showed that leading companies including SanDisk, Micron Technology, Seagate Technology, and Western Digital each posted share-price declines of more than 20% over the past several weeks. Analysts said the underlying logic supporting memory chip demand is being reassessed, with a key variable being whether the technology gap among AI large-model developers will continue to narrow. Analysts also said the memory chip industry is undergoing a deep shift in its business model. In the past, memory products were treated more like commodities, with prices moving with the market and contracts often set on quarterly or annual terms. Now, cloud providers and AI data centers seeking to secure critical supply are increasingly signing long-term supply agreements with original manufacturers, typically lasting three to five years and including price ranges, minimum purchase volumes, and customer deposits.