To The Moon

The uncomfortable answer is neither cleanly. What just happened is not a bubble bursting the way 2000 happened, where the underlying businesses were illusions. And it is not a straightforward bargain hunt either, because some of what got priced in at the peak was genuinely ahead of the fundamentals. This is a valuation reset on real businesses, triggered by three separate catalysts converging in 72 hours. 1. Three Catalysts, Not One SanDisk delivered nearly $9 billion in Q4 revenue, a record 84.6% gross margin, and more than $5 billion in adjusted free cash flow. Revenue and earnings both beat estimates. The stock still fell 5.4% on the day and another 7% after hours. The reason was one number: Q1 FY27 revenue guidance came in at $10.3 to $10.8 billion against Street expectations of $11.16

July payrolls unexpectedly fell by 23,000, versus expectations for an increase of about 80,000. The unemployment rate slipped to 4.1%, partly because people left the labour force, while previous months were revised lower. That pushed the implied probability of a September Fed hike down to roughly 40%–44%, compared with about two-thirds a week earlier. The The semiconductor picture is improving following the recent correction, but volatility remains high. AI-related demand remains visible in memory, cloud infrastructure and data-centre investment. Sandisk, for example, forecast revenue above expectations because of strong memory demand from AI data centres, even though its shares subsequently sold off as investors focused on valuation and expectations. 10-year Treasury yield fell to about 4

Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions. New trades: $SMH VERTICAL 260911 PUT 515.0/PUT 512.5$  $SNDK VERTICAL 260814 PUT 1060.0/PUT 1062.5$  $AVBP VERTICAL 260918 PUT 22.5/PUT 25.0$  Closed trades: $VIAV VERTICAL 260821 PUT 31.0/PUT 30.0$ 

Pretty obvious this is a bargain hunting opportunity. The demand for AI is not dead. You gotta need high end cpu to run AI. All major companies are competing in that AI race. The earnings of the chip companies are not for show.

The uncomfortable answer is neither cleanly. What just happened is not a bubble bursting the way 2000 happened, where the underlying businesses were illusions. And it is not a straightforward bargain hunt either, because some of what got priced in at the peak was genuinely ahead of the fundamentals. This is a valuation reset on real businesses, triggered by three separate catalysts converging in 72 hours. 1. Three Catalysts, Not One SanDisk delivered nearly $9 billion in Q4 revenue, a record 84.6% gross margin, and more than $5 billion in adjusted free cash flow. Revenue and earnings both beat estimates. The stock still fell 5.4% on the day and another 7% after hours. The reason was one number: Q1 FY27 revenue guidance came in at $10.3 to $10.8 billion against Street expectations of $11.16

July payrolls unexpectedly fell by 23,000, versus expectations for an increase of about 80,000. The unemployment rate slipped to 4.1%, partly because people left the labour force, while previous months were revised lower. That pushed the implied probability of a September Fed hike down to roughly 40%–44%, compared with about two-thirds a week earlier. The The semiconductor picture is improving following the recent correction, but volatility remains high. AI-related demand remains visible in memory, cloud infrastructure and data-centre investment. Sandisk, for example, forecast revenue above expectations because of strong memory demand from AI data centres, even though its shares subsequently sold off as investors focused on valuation and expectations. 10-year Treasury yield fell to about 4

Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions. New trades: $SMH VERTICAL 260911 PUT 515.0/PUT 512.5$  $SNDK VERTICAL 260814 PUT 1060.0/PUT 1062.5$  $AVBP VERTICAL 260918 PUT 22.5/PUT 25.0$  Closed trades: $VIAV VERTICAL 260821 PUT 31.0/PUT 30.0$ 

Pretty obvious this is a bargain hunting opportunity. The demand for AI is not dead. You gotta need high end cpu to run AI. All major companies are competing in that AI race. The earnings of the chip companies are not for show.