Wall Street's enthusiasm for memory chip stocks may not return despite attractive valuations if the market remains skeptical about the structural nature of AI demand
Too little corroboration in the last 3 days to call a trend (3 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"Tepper cut his position in Micron Technology by more than 41%... He appeared to get ahead of the July drawdown in memory stocks. Micron shares skyrocketed more than 240% in the second quarter... But shares have pulled back nearly 16% since the start of July, part of a broader downturn in the memory chip space."
"The tech-heavy Nasdaq fell on Friday as investors sold chip stocks on worries about massive spending on artificial intelligence ahead of the next batch of megacap earnings reports. Late on Thursday, Intel forecast quarterly profit and revenue above Wall Street estimates and outlined plans to increase spending over the next two years. Still, the chipmaker's shares sank on Friday along with the Philadelphia SE Semiconductor index."
"Wall Street fell in love with these names on the way up. The question is whether a bargain multiple is enough to bring anyone back."