Svmuu News: Garrett Jin, representative of “1011 Insider Whale,” posted that the market structure has undergone significant changes this week, and capital within the AI industry chain is being reallocated.
Change 1: Signs of a temporary peak in the memory chip sector are emerging
He noted that Micron’s stock price encountered resistance near $1,250 and retreated. Although its earnings report outperformed expectations, the stock continued to decline on heavy volume, exhibiting the classic “weakness after positive news” characteristics of a market top.
Meanwhile, capital is rapidly flowing out of the memory sector. DRAM-related ETFs have seen heavy-volume declines, and SK Hynix and Samsung Electronics in the South Korean market have also weakened. Data shows that foreign investors have withdrawn more than 100万亿韩元 (approximately $650亿美元) from the South Korean stock market over the past two months.
Change 2: Capital Shifts Toward AI Hyperscalers
He pointed out that the real destination for capital is not small- and mid-cap AI-themed stocks, but rather core cloud computing giants such as Google, Microsoft, and Amazon.
Last Friday, as the chip sector came under pressure, GOOG and MSFT stabilized amid heavy trading volume, and this week, META’s surge on heavy volume further reinforced this trend.
Garrett Jin believes the logic behind this round of capital migration is the “token optimization trend”: As more and more simple tasks are handled by low-cost models, value will gradually concentrate in the cloud services and orchestration layers—which are billed per token—rather than in the foundational model layer. This also constitutes the core moat of hyperscale cloud providers, and the current strategy should focus on catch-up rally opportunities for these companies.