Analysis: The three major memory chip makers are hit by a sell-off, and Samsung’s undervaluation may become a new choice for investors

Deep Tide TechFlow message: On July 20, according to The Information, the shares of Samsung Electronics, SK hynix, and Micron Technology—the three major memory chip companies—have all fallen this month, providing an opportunity for investors to reconfigure their portfolios for the fast-growing memory chip industry. Market concerns are that the current memory chip boom driven by artificial intelligence demand may slow down over the next few years, echoing the “expansion—oversupply—downturn” pattern commonly seen in past cyclical industry cycles.

Analysts note that if investors choose to enter the memory chip sector at this stage, they need to believe that AI-driven storage demand growth can be sustained and can withstand risks posed by volatility in industry cycles. When it comes to investment selection, one strategy is to focus on companies with the lowest valuations. Samsung currently has relatively lower valuations among the three memory chip enterprises, and may become a choice for some investors to capture growth opportunities in the storage industry.