Hong Kong Stock Connect Movement | Chip stocks decline further in the afternoon, memory module spot market prices plummet, major banks indicate server-side demand remains strong

LootboxPhobia · 2026-04-02T08:27:03+00:00

Chip stocks generally declined in the afternoon, with Fudan, Huahong Semiconductor, SMIC, and others experiencing significant drops. Market discussions focus on the progress of AI storage technology and weakening demand from individual consumers, leading to increased sell-offs of low-end DDR4 memory modules in the spot market. Nevertheless, demand in the enterprise market remains strong and unaffected.

LootboxPhobia

2026-04-02 08:27:03

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Zhitong Finance APP learned that chip stocks’ decline widened in the afternoon. As of the time of writing, Shanghai Fudan (01385) was down 8.25%, trading at HK$34.94; Hua Hong Semiconductor (01347) was down 5.14%, trading at HK$79.35; SMIC (00981) was down 5.01%, trading at HK$50.2; Zhaoyi Innovation (03986) was down 4.86%, trading at HK$348.2.

On the news front, Nvidia has recently rolled out the BlueField-4 STX storage architecture, and Google has released the TurboQuant AI memory compression technology. The market has started discussing whether AI can do the same or even more work with less storage. In addition, since the memory price surge began in the fourth quarter of last year, many individual consumer purchase demands have been suppressed. Recently, the spot trading side has sought to recoup cash and realize profits. The trading side has sold off a larger amount of low-end DDR4 memory modules, further pressuring and weighing on the channel market, with channel DDR4 memory modules leading the declines.

It is worth noting that Wall Street and industry research institutions generally emphasize that the spot market is mainly composed of PCs and consumer electronics, and its share of total market trading is, at most, only in the low single-digit percentages. Both Goldman Sachs and Korea brokerage Daeshin Securities’ latest reports indicate that the enterprise contract market has not been affected by this round, and that the major cloud service providers’ demand for server memory remains urgent; the supply-demand fundamentals have not undergone any substantive reversal.

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