WDC 2X Long ETF

$Western Digital(WDC.US)

Context:

WDC has been one of those positions that reminds me how different market sentiment can be from actual industry demand.

The stock has faced pressure from concerns around slower AI growth, higher yields, and whether AI infrastructure spending can keep going.

But what keeps me interested is simple: AI still needs physical infrastructure, and that includes a lot of storage. Tight HDD supply and longer order visibility make me think storage may be more important to the AI buildout than the market gives it credit for.

My Trade:

I’m still holding WDC. I don’t want to judge the position based on daily AI headlines.

What matters more to me is whether hyperscale data-center demand stays strong, supply remains disciplined, and WDC can turn that demand into better cash flow and fundamentals.

Takeaway:

This trade changed how I think about AI investing. Not every winner has to make the most advanced chips.

Sometimes the less exciting parts of the infrastructure stack can benefit from the same long-term trend.

So short-term weakness doesn’t automatically change my view. I’d rather watch whether the storage demand story itself starts to break.

Context

SanDisk Corporation (SNDK) has undergone a massive structural shift since completing its official separation from Western Digital. Now trading as an independent pure-play AI memory and high-performance NAND storage provider, the stock experienced a meteoritic +1,600% run over the past year before enduring a severe 35% drawdown from its summer high of $2,354.39.

Despite the technical cooling off, SanDisk’s underlying business metrics are powerhouse level: the company reported fiscal Q4 revenue of $8.97 billion (a 372% year-over-year surge), an industry-leading non-GAAP gross margin of 84.6%, and secured an astronomical $93.9 billion backlog via multi-year contracts with 8 core hyperscalers (including Meta). Essentially, memory is shedding its historical “cyclical commodity” discount and re-rating as critical AI enterprise infrastructure.

My trade

Given the massive gap between the company’s stellar fundamentals and the recent technically-driven chart drawdown, I executed a Buy the Dip strategy:

Entry Point: Will load on more shares heavily as the stock bottom out near the $1,500 – $1,550 support band, capitalizing on the panic sell-off triggered by temporary sector-wide macro rotations.

Takeaway

SanDisk is no longer a legacy flash drive producer; it is now fully entrenched as a structural AI infrastructure engine. The massive multi-year contracts provide predictable revenue visibility that is practically unheard of in traditional cyclical semiconductor history. With management holding a robust, debt-free balance sheet and ample runway for extensive share buybacks, the fundamental bull case remains incredibly strong.

Traders should ignore the short-term noise and use steep drawdowns to accumulate exposure, keeping a close eye on whether upcoming guidance can continuously sustain these historic 80%+ gross margins.

Trump has just rejected Iran’s 7-day ceasefire proposal which offered to reopen the Strait of Hormuz and resume nuclear talks in exchange for lifting the U.S. port blockade.

Trump reportedly expects to launch a renewed U.S. bombing campaign after the November midterms, extending the 209-day conflict.

Source- Wall Street Journal

I think this market weakness will spillover to October. Singapore's inflation is now over the annual 2% target and unemployment period is also getting longer, a potential warning for the foreseeable future.

Markets movements will be clearer as we come to the end of the month. Unsure if it is directional bearish or bullish but if the macro problems are persistent I do not think we will have big rallies but might have sudden drop. DCA slowly into stocks to participate in the market and chill over the weekends.

The electrification contracts won by CSE are much needed good news for a stock that has been range bound for some months.

Reports of a Trump deal with Iran to reopen Strait of Hormuz last night sent the market into recovery mode, with the main indexes closing relatively flat and even slightly up in after hours. Though I remain cautious as it's Friday and anything can happen over the weekend when markets are closed.

REIT player need to monitor the bond market closely and not rush to complete your position. The oil and inflation issues are still clear and present issues and chances for rate cut in the foreseeable future is basically out of the window.

When sentiments are bearish with so many narratives from oil to yields, etc., not putting a dent in the market while the bears keep blabbering, it reminds me that markets top on euphoria. Doesn’t look euphoric to me when there are so many bears around!

Lol. They called for an AI slowdown and signed another deal. Talk about actions speaking louder than words! And looking at how sentiments are in the basement yet markets are resilient seems to indicate the trend is up. We might get a dip into mid-October or November but it looks like a rally is in the making!