Is the storage sector really running out of steam?
$SNDK It has already fallen from a high of 1,900 to 1,400, and it’s really driving me crazy. SanDisk is now down to around 1,400, while Micron $MU
, Seagate, and Western Digital are also weakening in tandem. This suggests the problem isn’t limited to SanDisk—the entire storage sector is facing selling pressure.
From what I’ve read, this decline is mainly due to three factors:
First, progress in ChangXin Memory Technologies’ new technology has made the market worry that competition will intensify in the future;
Second, AI investment is growing ever larger, and investors are reassessing the relationship between spending and returns;
Third, SanDisk had already climbed significantly, so any weakening in growth expectations can lead to a sharp valuation pullback.
But I don’t think this means the storage sector is completely finished. The long-term demand for AI and data storage is still worth watching. What really matters next is whether storage prices, industry supply and demand, and SanDisk’s earnings can continue to support strong growth.
Although I somewhat agree that there’s a tech bubble, this is an era when we should be advancing technology to move society forward, so I’m not pessimistic.
Technically, the key short-term hurdle is whether the price can hold at $1,400 and reclaim $1,500. If it keeps making new lows, we shouldn’t rush to conclude that it has bottomed. If it recovers $1,500 on strong volume, then we can see whether the rebound has legs. Don’t blindly buy the dip for now—first see whether the price can stabilize.
$SNDK It has already fallen from a high of 1,900 to 1,400, and it’s really driving me crazy. SanDisk is now down to around 1,400, while Micron $MU
, Seagate, and Western Digital are also weakening in tandem. This suggests the problem isn’t limited to SanDisk—the entire storage sector is facing selling pressure.
From what I’ve read, this decline is mainly due to three factors:
First, progress in ChangXin Memory Technologies’ new technology has made the market worry that competition will intensify in the future;
Second, AI investment is growing ever larger, and investors are reassessing the relationship between spending and returns;
Third, SanDisk had already climbed significantly, so any weakening in growth expectations can lead to a sharp valuation pullback.
But I don’t think this means the storage sector is completely finished. The long-term demand for AI and data storage is still worth watching. What really matters next is whether storage prices, industry supply and demand, and SanDisk’s earnings can continue to support strong growth.
Although I somewhat agree that there’s a tech bubble, this is an era when we should be advancing technology to move society forward, so I’m not pessimistic.
Technically, the key short-term hurdle is whether the price can hold at $1,400 and reclaim $1,500. If it keeps making new lows, we shouldn’t rush to conclude that it has bottomed. If it recovers $1,500 on strong volume, then we can see whether the rebound has legs. Don’t blindly buy the dip for now—first see whether the price can stabilize.