--- title: "Chip stock sell-off intensifies as Google announces a technological breakthrough that can significantly reduce memory requirements" type: "News" locale: "en" url: "https://longbridge.com/en/news/280627735.md" description: "Storage chip stocks continue to decline as Google announces new technology that can reduce memory demand. SK Hynix and Samsung Electronics fell more than 6% and about 5% respectively in the Korean market. In the U.S., Micron Technology, Western Digital, and SanDisk all dropped over 2% in pre-market trading. Despite chip prices soaring due to AI demand in recent months, storage chip companies are under pressure. The chairman of SK Group stated that the shortage of storage chips will last until 2030" datetime: "2026-03-26T12:15:37.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280627735.md) - [en](https://longbridge.com/en/news/280627735.md) - [zh-HK](https://longbridge.com/zh-HK/news/280627735.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/280627735.md) | [繁體中文](https://longbridge.com/zh-HK/news/280627735.md) # Chip stock sell-off intensifies as Google announces a technological breakthrough that can significantly reduce memory requirements Storage chip stocks continued to decline on Thursday after Alphabet Inc.'s Google announced a research achievement that could make storage usage for artificial intelligence development more efficient. South Korea's market leaders SK Hynix and Samsung Electronics fell over 6% and about 5%, respectively, in Seoul. In the U.S., Micron Technology, Western Digital, and SanDisk all dropped more than 2% in pre-market trading, following declines on Wednesday. In recent months, as the rapid development of artificial intelligence infrastructure has driven chip prices to soar, leading to increased profits and stock prices, storage chip companies have performed strongly. Four major tech companies, led by Amazon and Google, plan to spend about $650 billion this year to build data centers, resulting in significant purchases of NVIDIA's AI accelerators and related memory chips. SK Group Chairman Choi Tae-won recently stated that the shortage of storage chips will continue until 2030. However, Google's new technology is expected to alleviate some of the shortage issues and may drive prices down. The company announced this research on the X platform this week, although the related results were initially published last year. Google stated that TurboQuant technology can significantly reduce the amount of memory required to run large language models, thereby lowering the overall cost of AI training. Investors may be concerned that this will reduce the demand for memory from large-scale cloud service providers, thus alleviating the memory shortage that has led to rising prices for smartphones and consumer electronics ### Related Stocks - [Micron Technology, Inc. (MU.US)](https://longbridge.com/en/quote/MU.US.md) - [Alphabet Inc. (GOOGL.US)](https://longbridge.com/en/quote/GOOGL.US.md) - [Western Digital Corporation (WDC.US)](https://longbridge.com/en/quote/WDC.US.md) - [Alphabet Inc. (GOOG.US)](https://longbridge.com/en/quote/GOOG.US.md) - [Samsung Electronics Co., Ltd. Sponsored GDR (SMSN.UK)](https://longbridge.com/en/quote/SMSN.UK.md) - [Samsung Electronics Co Ltd Sponsored GDR Pfd (SSNGY.US)](https://longbridge.com/en/quote/SSNGY.US.md) - [First Trust Nasdaq Semiconductor ETF (FTXL.US)](https://longbridge.com/en/quote/FTXL.US.md) - [iShares Semiconductor ETF (SOXX.US)](https://longbridge.com/en/quote/SOXX.US.md) - [Direxion Daily Semicondct Bear 3X ETF (SOXS.US)](https://longbridge.com/en/quote/SOXS.US.md) - [VanEck Semiconductor ETF (SMH.US)](https://longbridge.com/en/quote/SMH.US.md) - [Direxion Daily Semicondct Bull 3X ETF (SOXL.US)](https://longbridge.com/en/quote/SOXL.US.md) - [GraniteShares 2x Long MU Daily ETF (MULL.US)](https://longbridge.com/en/quote/MULL.US.md) - [Invesco Semiconductors ETF (PSI.US)](https://longbridge.com/en/quote/PSI.US.md) - [XL2CSOPHYNIX (07709.HK)](https://longbridge.com/en/quote/07709.HK.md) - [Invesco PHLX Semiconductor ETF (SOXQ.US)](https://longbridge.com/en/quote/SOXQ.US.md) - [Roundhill GOOGL WeeklyPay ETF (GOOW.US)](https://longbridge.com/en/quote/GOOW.US.md) ## Related News & Research - [What TurboQuant Actually Means for AI Memory Stocks](https://longbridge.com/en/news/281528405.md) - [Google in Talks With Poolside to Revive Data Center Project](https://longbridge.com/en/news/281507610.md) - [Google's Nobel Prize-Winning AI Chief: 'We Don't Feel Any Pressure' While OpenAI Burns $14 Billion](https://longbridge.com/en/news/281220147.md) - [Google has been developing screenless Fitbit band and plans to release it later this year - Bloomberg News](https://longbridge.com/en/news/281269407.md) - [Google Lets Gmail Users Change Old Email Addresses Without Losing Accounts](https://longbridge.com/en/news/281579693.md)