Garrett Jin: Memory Chip Sector Has Peaked Temporarily, Hyperscale Cloud Providers to Experience a Rally

BlockBeats News, July 2nd, "BTC OG Insider Whale" proxy Garrett Jin stated that the memory sector has temporarily peaked. Micron encountered resistance at $1250 and retraced. Despite significantly exceeding earnings expectations, the stock price continued to plummet on high volume. The lack of follow-up buying after the positive news is a clear signal of a temporary top. Funds are rapidly exiting the memory sector, with the DRAM ETF plunging on high volume. SK Hynix and Samsung are under pressure simultaneously, with overseas investors in Korea withdrawing over 100 trillion Korean won (approximately $65 billion) from the Korean market in the past two months. However, funds have not exited the AI track but are rotating within the track. While chip stocks were being sold off last Friday, Google, Microsoft, and Amazon saw heavy volume at the bottom, and today Meta similarly surged on high volume.

Garrett Jin believes the logic behind this rotation is Token Optimization: as more workloads are handled by inexpensive models for simple tasks, value is gradually settling in the cloud and orchestration layer billed by tokens, rather than the model layer itself. This is where the moat of hyperscale cloud providers lies. Based on this, it is judged that hyperscale cloud providers will experience a round of catch-up rally. It is recommended to reduce positions in memory and join the chase-up rebound of large cloud providers.