$Micron Tech(MU.US)$Sandisk(SNDK.US) trend is bullish!

Recently, Micron Technology and SanDisk have experienced a brutal decline. Personally, I believe it's due to the uncertainty of war causing panic in market sentiment, compounded by the one-sided resonance triggered by intermediaries heavily shorting. During a decline, all information is interpreted and amplified as negative by the market.

1. Google's algorithm does not inherently constitute a negative for memory chips, but market sentiment still interprets it as such.

2. The drop in DDR spot prices is essentially due to hoarding, which caused spot prices to be far higher than the contract prices of the three major players. Even if spot prices fall further, they are still higher than contract prices. It's just a short-term realization of profits from hoarding, and the scale accounts for only a few percentage points. Micron Technology has fully transformed into an AI infrastructure stock, and the fundamental shortage of memory has not changed.

3. Citigroup lowered Micron Technology's target price, giving a P/E ratio of 5-6x for 2026 and 3.4x for 2027. Everyone can interpret it themselves. The performance and growth are already there. Decide for yourself what P/E ratio is appropriate and whether to go long or short.

I am personally firmly bullish on SanDisk and Micron Technology. Note: it's a bullish trend. The short-term stampede caused by panic in the capital market due to the impact of the Middle East war cannot change the medium-term trend. Now, as we enter the AI era, I don't think memory stocks are cyclical anymore, which is also why SanDisk has risen more than tenfold in over half a year. The biggest uncertainty now is still the Middle East situation. The sensitivity and emotional reaction of the capital market will be very strong, and the trend after a short-term rebound still depends on the Middle East situation.