U.S.-listed memory chip makers have fallen sharply from late-June highs, with SanDisk, Micron Technology, Seagate Technology and Western Digital each down more than 20% over the past several weeks, according to a report cited by China Central Television Finance and relayed by BlockBeats on July 11. The pullback came after news including Meta selling computing power raised concerns about excess AI capacity, pressuring the broader memory segment.
Industry participants said the memory business has long been defined by a cycle in which manufacturers expand capacity during boom periods, only to face concentrated supply releases, price collapses and industrywide losses. Capital spending is then cut, and the next upcycle arrives when demand recovers.
Analysts cited in the report said the core logic supporting memory demand is now being reassessed. A key variable is whether the technology gap among major AI large models will continue to narrow. They also said the sector is seeing a deeper shift in commercial practice: instead of mainly using quarterly or annual contracts tied closely to market pricing, cloud providers and AI data centers are increasingly signing three- to five-year supply agreements with original manufacturers, including price bands, minimum purchase commitments and customer deposits.
Memory chip names retreat from late-June highs
U.S. memory chip stocks have pulled back since reaching highs in late June, according to a China Central Television Finance report cited by BlockBeats on July 11. News including Meta selling computing power sparked concern about excess computing capacity, leading to a broader correction across the sector.
Data cited in the report showed that SanDisk, Micron Technology, Seagate Technology and Western Digital have each fallen more than 20% over the past several weeks.
The sector's cycle is back in focus
Industry participants said the memory chip business has historically moved in cycles. During strong periods, manufacturers often expand capacity at the same time. That additional capacity then comes online in a concentrated wave, prices fall sharply, and the industry slips into losses. Producers later cut capital spending, and the next upcycle arrives once demand improves.
AI demand assumptions are being reassessed
Analysts said the basic thesis supporting memory demand is facing reassessment. The key variable, they said, is whether the technology gap among major AI large models will keep narrowing.
The report also said the industry is going through a deeper change in how business is done. In the past, memory products were traded more like commodities, with prices moving with the market and contracts commonly set on a quarterly or annual basis. Now, cloud providers and AI data centers are increasingly signing three- to five-year supply agreements with original manufacturers to secure key supply, with terms that include price bands, minimum purchase volumes and customer deposits.
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