$AMD has risen nearly 10% and has crossed the trillion-dollar market-cap threshold, and the entire semiconductor sector has once again been reignited by sentiment. INTC, ARM, and QCOM surged in line with the AI compute-driven theme, with a strong spillover effect from U.S. investors’ risk-on appetite. But beneath the lively trading, structural disagreements are already starting to quietly emerge.
The memory segment has not been equally enthusiastic. MU and WDC saw relatively restrained gains, and the $SNDK that had stood out earlier in the rally even opened high and then fell, ultimately closing down 1.4%. Earlier, by benefiting from expectations such as index inclusion, the market effectively front-loaded the gains. At a time when liquidity was ample as the leading names surged, the positioning was then calmly withdrawn—locking in exits.
Within the same AI narrative chain, capital has taken sharply different actions toward assets at different tiers. Against the backdrop of interest rates staying elevated, the tolerance for valuation expansion is shrinking. What had quickly turned into a broad-based rally is rapidly shifting into a rotation of winners and losers—along with localized profit-taking.
Next, we need to watch whether the core compute leaders can hold their valuation support level. If the momentum in the leading products shows signs of exhaustion, the selling pressure from the memory side is likely to spread further across the entire tech sector.
The memory segment has not been equally enthusiastic. MU and WDC saw relatively restrained gains, and the $SNDK that had stood out earlier in the rally even opened high and then fell, ultimately closing down 1.4%. Earlier, by benefiting from expectations such as index inclusion, the market effectively front-loaded the gains. At a time when liquidity was ample as the leading names surged, the positioning was then calmly withdrawn—locking in exits.
Within the same AI narrative chain, capital has taken sharply different actions toward assets at different tiers. Against the backdrop of interest rates staying elevated, the tolerance for valuation expansion is shrinking. What had quickly turned into a broad-based rally is rapidly shifting into a rotation of winners and losers—along with localized profit-taking.
Next, we need to watch whether the core compute leaders can hold their valuation support level. If the momentum in the leading products shows signs of exhaustion, the selling pressure from the memory side is likely to spread further across the entire tech sector.