1011 Insider Whale Agent: AI Computing Power Transactions Are Shifting, Funds Moving from Memory Chips to Hyperscale Cloud Providers

According to Odaily, "1011 Insider Whale" agent Garrett Jin pointed out in a post that there has been a clear change in market structure this week, with funds within the AI industry chain being reallocated.

Change 1: Signs of a cyclical peak in Memory chips

He stated that Micron's stock price faced resistance and fell back around the $1250 level. Despite earnings results exceeding expectations, the stock price is still declining on increasing volume, displaying typical top-forming characteristics of "weakening after good news is priced in."

Concurrently, capital is rapidly flowing out of the memory chip sector. DRAM-related ETFs are experiencing declines on heavy volume, and SK Hynix and Samsung Electronics in the South Korean market are also weakening. Data shows that foreign investors have withdrawn over 100 trillion Korean Won (approximately $650 billion) from the South Korean stock market in the past two months.

Change 2: Funds rotating towards AI Hyperscalers

He noted that the real direction for absorbing this capital is not small and mid-cap AI concept stocks, but rather the core cloud computing giants represented by Google, Microsoft, and Amazon.

Last Friday, when the chip sector came under pressure, GOOG and MSFT had already stabilized on increased volume, and this week META has further strengthened this trend by rallying on high volume.

Garrett Jin believes the logic behind this capital migration is the "token optimization trend." As more simple tasks are handled by low-cost models, value will gradually concentrate on the token-based billing cloud services and orchestration layers, rather than the foundational model layer. This also forms the core moat for hyperscale cloud providers. The current strategy should focus on catching up opportunities in hyperscale cloud names.