The U.S. stock market's leading storage chipmaker has plunged over 20% in the past few weeks, with the underlying logic facing a reassessment.

BlockBeats News, July 11th, according to a report by CCTV Finance, industry insiders stated that in the history of the storage chip industry, whenever there is a boom, manufacturers often simultaneously expand production capacity, leading to a concentrated release of new capacity and a sharp price drop, causing the entire industry to fall into losses. Subsequently, manufacturers collectively reduce capital spending. When demand picks up again, another boom cycle begins, forming the industry's unique cyclicality.

Since reaching a peak in late June, U.S. stock storage chip companies have experienced a collective pullback as concerns over excess mining power were raised following Meta's sale of hash rate. Data shows that industry leaders such as SanDisk, Micron Technology, Seagate Technology, and Western Digital have all seen their stock prices drop by over 20% in the past few weeks.

Analysts pointed out that the underlying logic supporting the demand for storage chips is currently being reassessed, with the key variable being whether the technological gap between various AI large models will continue to narrow. Analysts also noted that the storage chip industry is undergoing a profound change in business models: in the past, storage was more like a commodity, with prices following the market trend, and contracts mostly based on quarterly or annual terms; now, cloud providers and AI data centers are increasingly entering into long-term supply agreements with OEMs for three to five years with pricing ranges, minimum purchase commitments, and customer deposits to ensure critical supply.