$Micron Tech(MU.US) $Sandisk(SNDK.US)

Are the CXMT memory optimization headlines a real threat to the memory trade or is it just another architecture that will lead to more usage of tokens which will make up for pricing power in volumes?

The memory trade, like the semis in general, has been fragile enough for these headlines to affect them almost every week.

We saw this last week with the HDD manufacturing capacity increase by Toshiba that took $Seagate Tech(STX.US) and $Western Digital(WDC.US) down 20%.

At some point, the street either is going to believe these names are undervalued relative to their growth or they are going to give up on trying to be optimistic when a new headline around memory efficiency comes out every other week and reminds them about how traditionally cyclical the business is.

Source: amit