Garrett Jin: The AI computing power market is undergoing a shift, with capital flowing from memory chips to cloud providers.

Shenchao TechFlow news: On July 02, Garrett Jin, the agent behind the “1011 Insider Whale,” posted an analysis stating that the market structure has shown clear changes this week. Funds within the AI industry chain are being reallocated, and there are signs that the storage chip market is hitting a stage peak. Micron’s share price ran into resistance at around $1250 and then fell back. Although its earnings report performed better than expected, the stock price is still declining on heavy trading volume, showing the typical top characteristics of “weakness after good news is priced in.” In the Korean market, SK Hynix and Samsung Electronics are also weakening. Data shows that over the past two months, foreign capital has withdrawn more than 100 trillion Korean won (about $6.5 billion) from Korea’s stock market. The real direction of capital inflow is not toward small- and mid-cap AI concept stocks, but toward core cloud computing giants represented by Google, Microsoft, Amazon, and others.

Garrett Jin believes that the logic behind this round of capital migration is the “Token Optimization Trend”: as more and more simple tasks are handled by lower-cost models, value will gradually become concentrated in the cloud services layer rather than the foundational model layer—this also forms the core moat of hyperscale cloud providers.