The storage sector pulled back again—should you get on the train this time? $SNDK
South Korean storage “two champions” suddenly sold off sharply. Samsung Electronics plunged 8.7%, and SK hynix also dropped more than 3%. This panic quickly spread to U.S. stocks, and in the pre-market the storage sector collectively plunged.
The main trigger for this pullback is that Samsung’s shareholder return plan came in below earlier market expectations for the high end.
Previously, the market had already been pricing in a lot: rising prices for memory chips, strong demand for HBM, and the AI computing power narrative. Once the actual plan fails to keep exceeding expectations, funds are likely to choose to lock in gains—especially profit-taking by those holding positions near the highs, which then exits in line with the trend.
Judging from pre-market action, SK hynix’s ADR is down about 3.2%, and memory-themed ETFs are down more than 3.5%. U.S. memory leaders were also under pressure: Micron fell about 3.4%, SanDisk dropped nearly 5%, and Western Digital and Seagate also weakened in tandem.
However, after the big rally earlier, market expectations for earnings and future growth are already extremely high.
So in the short term, the storage sector may continue to trade volatile and even see further downside, especially to watch whether leaders like Micron can hold their ground.
If, after the selloff, trading volume quickly shrinks and the leaders stop declining, it could instead bring about a relatively good “shakeout” to clear out positions.
Just wait for my key levels!
South Korean storage “two champions” suddenly sold off sharply. Samsung Electronics plunged 8.7%, and SK hynix also dropped more than 3%. This panic quickly spread to U.S. stocks, and in the pre-market the storage sector collectively plunged.
The main trigger for this pullback is that Samsung’s shareholder return plan came in below earlier market expectations for the high end.
Previously, the market had already been pricing in a lot: rising prices for memory chips, strong demand for HBM, and the AI computing power narrative. Once the actual plan fails to keep exceeding expectations, funds are likely to choose to lock in gains—especially profit-taking by those holding positions near the highs, which then exits in line with the trend.
Judging from pre-market action, SK hynix’s ADR is down about 3.2%, and memory-themed ETFs are down more than 3.5%. U.S. memory leaders were also under pressure: Micron fell about 3.4%, SanDisk dropped nearly 5%, and Western Digital and Seagate also weakened in tandem.
However, after the big rally earlier, market expectations for earnings and future growth are already extremely high.
So in the short term, the storage sector may continue to trade volatile and even see further downside, especially to watch whether leaders like Micron can hold their ground.
If, after the selloff, trading volume quickly shrinks and the leaders stop declining, it could instead bring about a relatively good “shakeout” to clear out positions.
Just wait for my key levels!
