Panic selling! Chip stocks lost 81 trillion in value, memory fell more than 20% and fell into a bear market again
Despite growing demand for AI, investor interest in memory stocks has waned, sending the Roundhill Memory ETF into a bear market.
Quick Look
- Although AI's demand for memory continues to grow, investor interest has shrunk.
- The Roundhill Memory ETF has fallen more than 20% from its peak in September, falling into a bear market again.
- The market value of major memory manufacturers has evaporated significantly, and the chip design progress of China Changxin Memory has also raised market concerns about competition and pricing power.
AI-generated summary
Why It Matters
Despite the growing demand for memory in AI construction, memory stocks have been experiencing violent fluctuations recently and have fallen into a bear market.
Memory stocks have fallen more than 20% from their highest point, falling into a bear market.
Yahoo Finance reported that investor interest in memory stocks has shrunk even as demand for memory continues to grow in the construction of artificial intelligence (AI). The Roundhill Memory ETF (DRAM) fell into a bear market again this week, falling more than 20% from its September swing peak.
The report pointed out that the memory active ETF's decline intensified on Thursday, causing the fund to fall nearly 22% from the highest point of the swing and nearly 40% from its June closing record. This was extremely violent volatility. DRAM plunged nearly 45% from June to late July, then rebounded by more than 40% until September. The latest wave of selling wiped out more than three-quarters of the gains.
According to reports, since October 6, the market value of major DRAM component manufacturers Samsung Electronics, Micron, SK Hynix and SanDisk has evaporated by more than US$700 billion (NT$22.72 trillion), while a broader Yahoo Finance index covering 61 semiconductor and storage stocks has evaporated nearly US$2.5 trillion (US$81.13 trillion). Before the opening of U.S. stocks on the 15th, Samsung plunged nearly 10% in the Korean stock market. The rebound of U.S. stocks that day helped Micron close down nearly 2%. However, the iShares Semiconductor ETF (SOXX) still fell for the eighth consecutive trading day, the longest losing streak since October 2008.
China's Changxin Memory announced on the 11th that it has made significant progress in memory chip design, raising concerns about competition and pricing power, which in turn affected global memory stocks. However, Changxin's stock price also fell sharply, closing down more than 5% on the 15th, bringing its decline by nearly 20% since the end of September.
Open Questions
- Will the decline in memory stocks continue to expand?
- What is the long-term impact of Changxin Storage’s progress on the global market?
