CXMT

📊 𝐈𝐍𝐕𝐄𝐒𝐓𝐎𝐑 𝐍𝐎𝐓𝐄: BofA Says Chinese AI Models Reinforce Bullish Memory Demand Outlook - $Micron Tech(MU.US) $SK Hynix(SKHY.US) $Sandisk(SNDK.US) $Seagate Tech(STX.US) $Western Digital(WDC.US)

BofA: US Semis

$Micron Tech(MU.US)

Micron remains one of the strongest AI memory beneficiaries in 2026, backed by record profitability, expanding HBM shipments and robust free cash flow. In its latest quarter, Micron reported record business performance, generated over $18 billion in adjusted free cash flow, held approximately $30 billion in cash and investments, and guided for another record quarter, highlighting that AI demand remains exceptionally strong. (Micron Technology⁠)

However, investors should not ignore the emergence of ChangXin Memory Technologies (CXMT). Following its blockbuster Shanghai IPO, the world’s fourth-largest DRAM supplier is accelerating capacity expansion with an estimated 8% global DRAM market share. While U.S. export restrictions still limit its competitiveness in premium HBM products, increased production in commodity DRAM could pressure industry pricing and gradually erode Micron’s gross margins in consumer and PC memory segments. (marketwatch.com⁠)

For long-term investors, the investment thesis remains intact because Micron’s technological leadership in HBM3E and AI memory commands premium pricing. Nevertheless, recent buyers should expect higher volatility after the stock’s sharp rally. Option sellers may consider waiting for implied volatility to normalize before selling cash-secured puts, while existing shareholders should monitor whether support holds near key technical levels. If CXMT triggers a broader DRAM price war, Micron could experience multiple compression despite resilient AI-driven earnings. This article is for educational purposes only and is not financial advice.

Highlights of an expert call from a Senior Director at ARM who was a Former Director at Western Digital regarding memory:

China's ChangXin Memory Technologies (CXMT) joining the IPO party. It's the world's 4th largest DRAM chipmaker with 7.7% market share. Well, if CEO of SK Hynix is spot on, memory shortages will persist beyond 2030 and they will all laugh their way to the bank.

What a wild swing in Asia markets as majority opened lower this morning before reversing towards the end of the session. STI surprisingly managed to edge even higher despite being down 0.9% at the open, with local banks heading the swing. Even memory and chip stocks look to have rebounded pre market.

Services inflation isn’t dead and the labor market hasn’t cracked. If CPI surprises to the upside, the Fed will hike to avoid losing credibility. Waller saying it out loud means other governors agree. I’m raising cash and hedging because the market is way too complacent.

June CPI should still reflect the lower oil prices seen for most of the month, but the recent jump in crude could make July inflation more challenging. Tonight's bank earnings will also be important if loan demand and credit quality remain resilient, markets may look past short term inflation. I'll be watching CPI first, then how Treasury yields react before making any new positions.

Looks like the market is past the SOH ding donging around. They should. It’s just noise and truth be told juvenile and unnecessary. CPI might act as the catalyst as well as earnings for the markets.

The Fed needs to talk tough. They need the credibility especially when they have a new leader who needs to prove he is impartial and independent. That will allow them to cut rates, do QE or even yield curve control down the road. Especially if the necessary data allowing that filters in. It’s all part of the politics they play.

Actually no one discuss about Sheng Siong new project announced yesterday. A S$520 million investment for a new distribution centre in Sungei Kadut.

Will this big spending affect its dividend payouts, even though the CEO assure the shareholders. If not how about the employees bonus over the next few years?🤔 The investment needs funding and cannot pluck from “sky”. Maybe no more “free food” at AGM 🤭.

Trump issue a letter to congress, he mentioned Conflict of Iran is resume. What does it mean ? We are facing high inflation era again

Oil spiked above $80/barrel as the war threat is back on. Bearish pressure looms with June CPI report coming out later as well. Now may be a good time to DCA into etfs or even look to start a position in a stock that you like at a more reasonable price following the pullback. However, I would still keep most of my cash ready for a further pullback when it comes later on.

amidst thechaos in the Iran & gulf, with hormuz strait shipping lane limiting flows, there is just full of opportunity for market manipulation.. range bound prices of oil and high beta stocks are in play

Markets turned cautious as rising oil prices pressured technology shares, especially semiconductors. Attention now shifts to June CPI and major U.S. bank earnings, which could shape expectations for the economy and corporate profitability. Comments from Fed Governor Waller suggesting rates may need to rise if inflation remains elevated have also increased uncertainty, raising the stakes for today’s inflation data and market reaction.

I think tonight's CPI is the biggest catalyst of the week. I'm not convinced the Fed will rush into another rate hike based on one inflation report, but if core CPI surprises to the upside, markets could quickly reprice expectations. I'd rather stay patient than make emotional trades based on headlines.

The recent sell-off in AI and semiconductor stocks doesn't change my long-term view. Higher oil prices and geopolitical risks can create short-term volatility, but I see them as opportunities to gradually add to quality companies with strong earnings and durable AI demand instead of chasing rallies.

For now, I'm keeping some cash available while staying invested in my highest-conviction positions. If inflation cools, growth stocks could rebound quickly. If it stays hot, I'll continue using market weakness to accumulate great businesses at better prices. Staying disciplined has always worked better for me than trying to predict every Fed move.

Just a semi recap TLDR: