Are storage chips facing a short-term valuation kill, or is the logic really going to be reassessed?

SanDisk (NASDAQ: SNDK), Micron Technology (NASDAQ: MU), Western Digital (NASDAQ: WDC), Seagate Technology (NASDAQ: STX) and other US stock storage chip sectors have started to continuously pull back.

The most innovative giant company in the universe, Google, is causing a stir again.

This time it's not an AI model, it's a chip storage module.

Google just introduced a compression algorithm called TurboQuant, claiming it can save about 6 times the memory.

It's equivalent to being able to fit six copies in the space that originally held one data set.

If the compression algorithm can boost storage efficiency to this extent, the ceiling for hardware demand may need to be recalculated.

Previously it was: AI computing power increases → storage demand grows linearly → expand, expand, expand.

Now it is: the algorithm helps you save a large portion first, and the logic of hardware demand has changed.

It's not that storage chips are no longer needed, but that the "expectation gap" has been shattered.