1011 Insider Whale Agent: AI Computing Power Trading Is Shifting, Capital Moving from Memory Chips to Hyperscalers

Odaily Odaily, Garrett Jin, an agent for the "1011 Insider Whale," stated that the market structure has seen significant changes this week, with capital being reallocated within the AI industry chain.

Change One: Memory chips show signs of a cyclical peak

He indicated that Micron's stock price encountered resistance and fell around the $1250 level. Although its earnings report outperformed expectations, the stock price continued to decline on heavy volume, exhibiting typical topping characteristics of "weakening after positive news is priced in."

Concurrently, capital is rapidly flowing out of the memory chip sector. DRAM-related ETFs are experiencing declines on high volume, while South Korea's SK Hynix and Samsung Electronics are also weakening. Data shows that foreign investors have withdrawn over 100 trillion Korean won (approximately $65 billion) from the South Korean stock market in the past two months.

Change Two: Capital rotates towards AI Hyperscalers

He pointed out that the true destination for this capital influx is not small and mid-cap AI concept stocks, but rather core cloud computing giants like Google, Microsoft, and Amazon.

Last Friday, as the chip sector came under pressure, GOOG and MSFT had already stabilized on heavy volume. This week, META's rally on increasing volume further reinforces this trend.

Garrett Jin believes the logic behind this capital migration is a "token optimization trend": as more simple tasks are handled by low-cost models, value will progressively concentrate in the token-based cloud services and orchestration layers, rather than the foundational model layer. This also constitutes the core moat for hyperscalers. The current strategy should focus on catching up opportunities in hyperscaler stocks.