US Stock Market Move | Storage sector performance differentiated, SanDisk (SNDK.US) down over 7%, Western Digital Corporation (WDC.US) up over 2%.

On Monday, the performance of the storage sector at the opening was mixed, with SanDisk (SNDK.US) falling by over 7%, Micron Technology, Inc. (MU.US) falling by over 6%, Seagate Technology Holdings PLC (STX.US) falling by over 1%, while Western Digital Corporation (WDC.US) bucked the trend and rose by over 2%. On the news front, Samsung Electronics and SK Hynix announced large-scale investment plans. Morningstar stock analyst JingJieYu stated that the total investment commitment for SK Hynix's Icheon Semiconductor Cluster is estimated to be around 60 trillion Korean won. If the additional commitment is for independent investment, it could mean significant oversupply risk in the next ten years. He pointed out that the pricing of memory will still show cyclical trends in the long run. It is expected that it will take at least two to three years for new capacity to start production. There will be excess demand over supply in the initial phase, but usually in the later stages, oversupply occurs due to peak capacity coinciding with slowing demand. The shortage of memory chips is intensifying, with long-term contracts and cash generation by memory manufacturers driving a series of capacity investments. However, unless the return on investment of super-scale cloud service providers can sustain continuous sales and price growth throughout the period, this trend may be difficult to maintain in the next ten years.