Serenity said on X that he remains bullish on memory stocks, including Micron and Samsung, and said this week’s focus in photonics has shifted back to AXT and Lumentum. According to Odaily, he said the photonics sector has already shown signs of supply tightness, with Coherent and Lumentum laser capacity sold out for the next two years, while AAOI’s earlier earnings report also showed continued strong demand for optical modules.

He also said many retail investors have been panic selling in the memory sector. Serenity said there have been some market changes, including Nvidia Rubin Ultra optimizing memory, and memory prices no longer rising as sharply as previously expected, but he said current valuations for storage companies remain high relative to operating profit, especially as storage demand is growing structurally. He added that next year’s supply-demand imbalance could become more severe.

Serenity said markets often panic when an industry falls and then follow a new narrative. He cited helium and LNG markets during the Iran war and reiterated supply tightness in memory during SpaceX earnings calls. He said industry bottlenecks and fundamentals have often not changed significantly, while market sentiment has shifted sharply.