Analysis: The three major memory chip manufacturers face a sell-off, and Samsung’s low valuation may become a new choice for investors

PANews July 21 news: According to The Information, shares of the three largest memory chip companies—Samsung Electronics, SK Hynix, and Micron Technology—have all declined this month, offering investors an opportunity to reposition for the fast-growing memory chip industry. The market is concerned that the memory chip boom currently driven by AI demand may slow down in the coming years, repeating the common “expansion—oversupply—downturn” pattern seen in past cyclical industry cycles.

Analysts said that if investors choose to enter the memory chip sector at this stage, they need to believe that AI-driven growth in storage demand can be sustained and can withstand the risks brought by industry cyclical fluctuations. In terms of investment selection, one strategy is to focus on companies with the lowest valuations. Samsung currently has a relatively low valuation among the three memory chip companies, and may become a choice for some investors to capture opportunities in the storage industry’s growth.