I just glanced at Micron's earnings guidance, and this trend for $SNDK instead made me a bit wary.
SanDisk is around 1762 today, with a 24-hour amplitude of 3% and trading volume of 428 million. The problem in the storage sector right now is not demand, but that expectations on the supply side have gotten too full. Micron gave a decent number, but the capacity crowding-out effect from HBM will become more obvious in Q3 — traditional NAND wafer starts are being constrained. This logic is a medium-term positive for $SNDK , but in the short term the price has already priced in most of it.
What I care more about is the pre-market move in U.S. stocks, whose linkage with $SNDK is weaker than expected. There is a common issue with storage cyclical stocks: the day the news is released is often the stage high. At this 1760 level, every buy order has to be justified by later real price increases, and that kind of thing has a lag.
If you're heavily positioned, you might consider trimming some while liquidity is still ample; chasing higher prices is probably not worth it.
#semiconductor
SanDisk is around 1762 today, with a 24-hour amplitude of 3% and trading volume of 428 million. The problem in the storage sector right now is not demand, but that expectations on the supply side have gotten too full. Micron gave a decent number, but the capacity crowding-out effect from HBM will become more obvious in Q3 — traditional NAND wafer starts are being constrained. This logic is a medium-term positive for $SNDK , but in the short term the price has already priced in most of it.
What I care more about is the pre-market move in U.S. stocks, whose linkage with $SNDK is weaker than expected. There is a common issue with storage cyclical stocks: the day the news is released is often the stage high. At this 1760 level, every buy order has to be justified by later real price increases, and that kind of thing has a lag.
If you're heavily positioned, you might consider trimming some while liquidity is still ample; chasing higher prices is probably not worth it.
#semiconductor