Woofun AI reports that storage chip stocks have declined by more than 20% in recent weeks, driven by market concerns over computing power oversupply following news of Meta selling capacity. Industry leaders including SanDisk, Micron Technology, Seagate Technology, and Western Digital have all experienced significant price drops since their late June peaks.

Analysts indicate that the fundamental logic supporting storage demand is undergoing reassessment, with the narrowing technological gap between major AI models as a key variable. The sector is also shifting from commodity-style quarterly contracts to three-to-five-year long-term supply agreements with cloud providers, featuring fixed price bands and minimum purchase quantities.