u/360mm

Apple is the only mag 7 who has not burned through all their FCF by building datacenters and the market is rewarding them for exactly that.

This signals that we might see hyperscalers who indicate heightened ai spend to be credited with a selloff by the market. And cutting back could lead to a rally, highly incentivicing cutbacks across the board come next earnings cycle.

Any slowdown of capex spend will lead to an absolute bloodbath for Memory and downstream semi suppliers at first who are riding high on ASP hikes. Even if we are still structurally in a shortage, stocks will crater as they are forward looking and pricing in the coming downturn.

This is only part 1 of the bubble popping. And even if it doesnt pop this part seems to be inevitable and was started to get priced in last week.

Apple is the only mag 7 who has not burned through all their FCF by building datacenters and the market is rewarding them for exactly that.

This signals that we might see hyperscalers who indicate heightened ai spend to be credited with a selloff by the market. And cutting back could lead to a rally, highly incentivicing cutbacks across the board come next earnings cycle.

Any slowdown of capex spend will lead to an absolute bloodbath for Memory and downstream semi suppliers at first who are riding high on ASP hikes. Even if we are still structurally in a shortage, stocks will crater as they are forward looking and pricing in the coming downturn.

This is only part 1 of the bubble popping. And even if it doesnt pop this part seems to be inevitable and was started to get priced in last week.

Sk being closed might be the best thing that could have happened to cap of such a red week.

Dip buyers stepping in buying higher quality ai stocks advantest, ibiden, tokyo electron

Kioxia still has no pulse though.