Shares of companies making computer memory and storage products dropped sharply after Google researchers unveiled a new data compression technique. Investors worried this could dampen demand for traditional memory chips and hard drives. However, industry analysts view this development as a temporary setback rather than a fundamental threat to the sector.

The core demand for memory and storage in data centers and consumer devices remains robust, suggesting the slump may be a buying opportunity rather than a sign of deeper trouble. Google's compression technique, while innovative, is unlikely to replace the need for physical memory and storage hardware anytime soon.