SherlockFanatic
08-07

$Micron Technology(MU)$ $SK hynix(SKHY)$  $SanDisk Corp.(SNDK)$ $iShares Semiconductor ETF(SOXX)$ The memory market has always been cyclical, tied to the booms and busts of consumer device demand -- laptops, phones, that kind of thing. The recent demand wave, though, has been all about data center infrastructure. There's no sign of that letting up. Maybe it will someday, but right now there isn't even a hint of it from anywhere in the industry. If memory is still structurally cyclical, then we're still early or mid cycle at worst.

The traditionally cyclical consumer device part of memory is at the very bottom barrel of its cycle -- this would be the "lower K" part of the economy. When that consumer eventually wakes back up someday, that will be additional demand for memory that isn't yet being accounted for.

It's impossible to accurately predict consumer demand trends, but recent economic, GDP, PMI, employment and inflation reports have been encouraging.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

  • Top
  • Latest
empty
No comments yet