AI memory isn’t dying. But the “AI can only go up” story might be. 👀
🤗 Extra: Is the AI memory bull market still stable?
Honestly, I’m not sure.
But I think we need to separate two things:
AI memory demand is still strong.
AI growth expectations are what’s starting to crack.
After the August 6 market close, both Western Digital and SanDisk reported numbers that looked strong on paper.
SanDisk beat expectations with $8.97B in revenue vs. $8.48B expected, and EPS of $39.25 vs. $34.96 expected.
Sounds bullish, right?
Except the next-quarter revenue guidance came in at $10.55B, below Wall Street’s $10.82B expectation.
And the market absolutely punished it.
SanDisk dropped around 8% after hours and opened the next day down as much as 13%.
Western Digital got hit even harder, swinging roughly between -11% and -19%.
Then South Korea got messy too.
SK Hynix briefly showed a bizarre 30% plunge in pre-market trading on Nextrade with just 11 shares traded — basically a liquidity ghost story rather than a real market move.
But regular trading still saw real weakness: SK Hynix fell around 10% intraday, closed down 4.97%, and dropped another 3.9% on August 7.
Samsung was under pressure too.
And then came rumors that Nvidia may be evaluating lower video-memory configurations for Rubin Ultra because of HBM supply constraints.
Whether that rumor becomes reality or not, the market clearly isn't treating “AI + memory” as an automatic buy anymore.
And that’s the important part.
SanDisk had already risen roughly 470% this year.
Western Digital was up around 200%.
At these valuations, “good results” are no longer enough.
The market wants better than expected.
That changes everything.
Because if companies with real factories, real customers, real products and real revenue can get destroyed simply because guidance isn't amazing enough…
What happens to the endless wave of AI + storage, AI + DePIN, AI + GPU tokens in crypto?
Some of them have barely any revenue.
Some have almost no users.
#DailyOrbit
🤗 Extra: Is the AI memory bull market still stable?
Honestly, I’m not sure.
But I think we need to separate two things:
AI memory demand is still strong.
AI growth expectations are what’s starting to crack.
After the August 6 market close, both Western Digital and SanDisk reported numbers that looked strong on paper.
SanDisk beat expectations with $8.97B in revenue vs. $8.48B expected, and EPS of $39.25 vs. $34.96 expected.
Sounds bullish, right?
Except the next-quarter revenue guidance came in at $10.55B, below Wall Street’s $10.82B expectation.
And the market absolutely punished it.
SanDisk dropped around 8% after hours and opened the next day down as much as 13%.
Western Digital got hit even harder, swinging roughly between -11% and -19%.
Then South Korea got messy too.
SK Hynix briefly showed a bizarre 30% plunge in pre-market trading on Nextrade with just 11 shares traded — basically a liquidity ghost story rather than a real market move.
But regular trading still saw real weakness: SK Hynix fell around 10% intraday, closed down 4.97%, and dropped another 3.9% on August 7.
Samsung was under pressure too.
And then came rumors that Nvidia may be evaluating lower video-memory configurations for Rubin Ultra because of HBM supply constraints.
Whether that rumor becomes reality or not, the market clearly isn't treating “AI + memory” as an automatic buy anymore.
And that’s the important part.
SanDisk had already risen roughly 470% this year.
Western Digital was up around 200%.
At these valuations, “good results” are no longer enough.
The market wants better than expected.
That changes everything.
Because if companies with real factories, real customers, real products and real revenue can get destroyed simply because guidance isn't amazing enough…
What happens to the endless wave of AI + storage, AI + DePIN, AI + GPU tokens in crypto?
Some of them have barely any revenue.
Some have almost no users.
#DailyOrbit