Storage chip stocks have dropped more than 20% in recent weeks, and their fundamental outlook is being reassessed.

According to Golden Ten Data on July 11, industry insiders stated that historically, every time the storage chip industry experiences a boom, manufacturers often simultaneously expand production capacity. This leads to a collective release of new capacity and a sharp drop in prices, causing the entire industry to fall into losses. Afterwards, manufacturers collectively cut back on capital expenditure, and as demand recovers, another boom ensues—this cycle constitutes the industry's unique periodicity. Since reaching a peak in late June, US storage chip stocks have collectively pulled back amid market concerns over a surplus of computing power sparked by news such as Meta's sale of computing capacity. Data show that leading companies in the industry, including SanDisk, Micron Technology, Seagate Technology, and Western Digital, have all seen their share prices drop more than 20% in recent weeks. Analysts point out that the fundamental logic supporting storage chip demand is now being reassessed, with the core factor depending on whether the technology gap between various AI large models will continue to narrow. They also note that the storage chip industry is undergoing a profound commercial model transformation: previously, storage was more like a commodity—with prices determined by the market and contracts typically on a quarterly or annual basis. Now, in order to secure critical supplies, cloud service providers and AI data centers are increasingly signing three-to-five-year long-term supply agreements with original manufacturers, which include price ranges, minimum purchase quantities, and customer deposits.