Is the storage sector in trouble?
$SNDK
From a high of 1900, it has fallen to 1400. Micron, Seagate, and Western Digital have all weakened in tandem, with the entire storage sector facing a sell-off.
Three reasons for the decline: ChangXin’s new technology is advancing, raising concerns about intensifying competition; increased AI investment has investors reassessing returns; and after the sector’s huge gains, valuations are retreating as growth expectations weaken.
But I’m not bearish on storage. Long-term demand for AI data storage remains, and the key things to watch are storage prices, industry supply and demand, and whether earnings reports can sustain strong growth. Tech may be in a bubble, but it still has room to grow over the long term.
On the charts, watch whether 1400 holds, with 1500 as a key short-term threshold. If it makes new lows, don’t rush to buy the dip. If it rises above 1500 on strong volume and holds, then watch to see whether the rebound continues. Don’t blindly buy the dip now—wait for the market to stabilize first.
$SNDK
From a high of 1900, it has fallen to 1400. Micron, Seagate, and Western Digital have all weakened in tandem, with the entire storage sector facing a sell-off.
Three reasons for the decline: ChangXin’s new technology is advancing, raising concerns about intensifying competition; increased AI investment has investors reassessing returns; and after the sector’s huge gains, valuations are retreating as growth expectations weaken.
But I’m not bearish on storage. Long-term demand for AI data storage remains, and the key things to watch are storage prices, industry supply and demand, and whether earnings reports can sustain strong growth. Tech may be in a bubble, but it still has room to grow over the long term.
On the charts, watch whether 1400 holds, with 1500 as a key short-term threshold. If it makes new lows, don’t rush to buy the dip. If it rises above 1500 on strong volume and holds, then watch to see whether the rebound continues. Don’t blindly buy the dip now—wait for the market to stabilize first.