HK Stock Market Move | Afternoon chip stocks fall further, spot market prices for memory modules plunge, and demand for server-side of key indexes remains strong.

Chip stocks extended their losses in the afternoon, with the latest figures showing SHANGHAI FUDAN (01385) down 8.25% to HK$34.94, HUA HONG SEMI (01347) down 5.14% to HK$79.35, Semiconductor Manufacturing International Corporation(00981) down 5.01% to HK$50.2, and GigaDevice Semiconductor Inc. (03986) down 4.86% to HK$348.2. On the news front, NVIDIA recently launched the BlueField-4 STX storage architecture, and Google released the TurboQuant AI memory compression technology. The market is now discussing whether AI can perform the same or even more work with less storage. Additionally, since the memory price hike in the fourth quarter of last year, many consumer purchase demands have been suppressed. Recently, there has been an increase in the sale of low-end DDR4 memory modules in the spot market as traders look to recoup profits, further impacting and pressuring the channel market, with DDR4 memory modules leading the decline. It is worth noting that Wall Street and industry research institutions generally emphasize that the spot market mainly consists of PCs and consumer electronics products, accounting for only a small percentage of the total market transactions. The latest reports from Goldman Sachs and South Korean securities firm Daishin Securities both point out that the enterprise contract market has not been affected by this wave, as major cloud service providers still have a strong demand for server memory, and the supply-demand fundamentals have not undergone a substantial reversal.