--- title: "Google's \"black technology\" triggers a major reshuffle in storage chip stocks: Soaring flash memory stocks stand at a crossroads" type: "News" locale: "en" url: "https://longbridge.com/en/news/280745581.md" description: "Google's \"TurboQuant\" technology may suppress demand for certain memory chips, leading to significant fluctuations in memory chip stocks. Analysts point out that the stock prices of flash memory manufacturers continue to decline, while the stock prices of high bandwidth memory (HBM) companies tend to stabilize. Investor enthusiasm for flash and storage products has waned, as Google's technology improves AI operational efficiency and reduces the demand for flash memory" datetime: "2026-03-27T07:33:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280745581.md) - [en](https://longbridge.com/en/news/280745581.md) - [zh-HK](https://longbridge.com/zh-HK/news/280745581.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/280745581.md) | [繁體中文](https://longbridge.com/zh-HK/news/280745581.md) # Google's "black technology" triggers a major reshuffle in storage chip stocks: Soaring flash memory stocks stand at a crossroads The Zhitong Finance APP noted that the continued sell-off of storage chip stocks over the past two days reveals a divergence in the AI investment boom. A breakthrough technology promoted by Google (GOOGL.US) is believed by analysts to potentially suppress demand for certain types of storage chips, while having little impact on others. On Friday, the stock prices of flash memory manufacturers, which are used for long-term storage devices running AI, continued to decline, including companies like Kioxia Holdings that have seen significant gains over the past few months. Meanwhile, the stock prices of leading high-bandwidth memory (HBM) companies used for NVIDIA's AI accelerators stabilized, with Samsung Electronics recovering all its losses and SK Hynix also nearing that point. Analysts stated that the market is beginning to realize that Google's "TurboQuant" technology enhances the efficiency of AI operations, posing a greater threat to the former category (flash memory) manufacturers. Morgan Stanley analyst Tiffany Yeh and others wrote in a report: "**By reducing memory usage and data transfer, TurboQuant significantly improves inference efficiency. However, it does not reduce the demand for core memory such as HBM.**" ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260327/1774595232335130.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) In recent months, investors have flocked to flash memory and storage product manufacturers, firmly believing that as AI goes mainstream, its demand will explode. Since the end of August, the stock price of SanDisk has increased by over 1000%, and Kioxia's stock has also risen by more than 600%. Their performance once surpassed that of traditional leaders in the storage industry like Samsung, SK Hynix, and Micron Technology—these companies were early favorites in AI trading. When the market's focus was still on the "training" of large language models like ChatGPT, the high-profit HBM chips produced by these companies were hot investment topics. Now, as investors begin to grasp Google's technological breakthrough, flash memory companies are bearing the brunt of the industry-wide sell-off that began this week. Google stated that this algorithm can reduce the amount of memory required for specific stages of running large language models by at least six times, helping to lower the overall cost of AI. Investors are concerned that this may reduce the demand for memory from large data center operators (hyperscale companies) like Meta. This, in turn, could depress the prices of components also used in smartphones and consumer electronics. Analyst Jake Silverman pointed out in a report: "**Since model weights need to be stored in GPU memory, the demand for HBM and DRAM produced by Micron may not be affected. However, NAND (flash memory) demand will face more profound long-term impacts.**" Indeed, after experiencing significant increases in the post-ChatGPT era AI boom, tech stocks are now under close scrutiny. Concerns about inflation triggered by the Iran war have made investors wary of high-valuation stocks, leading them to take profits based on daily news headlines Ed Gomes, Chief Investment Officer of SGMC Capital Pte, stated: "The development of hardware that supports the delivery and application development of artificial intelligence technology is a long-term trend that will span years or even decades, rather than days or weeks. **The sell-off triggered by TurboQuant is 'short-term noise,' which instead presents a very good buying opportunity**." ### Related Stocks - [Direxion Daily GOOGL Bull 2X Shares (GGLL.US)](https://longbridge.com/en/quote/GGLL.US.md) - [Alphabet Inc. 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