Memory-related stocks experienced a downturn in the Hong Kong market. As of the time of writing, GIGADEVICE (03986) fell by more than 5%, trading at HKD 386. MONTAGE TECH (06809) dropped 2.42% to HKD 177.6. Leveraged products tracking SK Hynix and Samsung Electronics also saw significant declines. The weakness followed an overnight drop in the US memory sector, where companies like Micron Technology and SanDisk fell over 3%. In South Korea's exchange today, SK Hynix's stock price dropped more than 6% at one point. Reports indicate that Google has introduced a new memory compression technology called TurboQuant, which can compress the key-value cache of large language models to 3 bits, achieving a 6x reduction in memory usage and up to 8x acceleration. This development has raised market concerns about the future demand for memory products. However, some analysts suggest this is more likely to be a short-term fluctuation rather than a disruptive threat to the industry.
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