# Chip panic was a false alarm — Micron's blowout earnings spark a massive AI rebound

_AI-generated trading idea · LONG · MU, SMH, TSM_

> Canonical page: https://commonquant.ai/research/for-you/chip-panic-was-a-false-alarm-micron-s-blowout-earnings-spark--e307f0f5-a464-41a4-baae-d27c56d9941f

Chip and AI stocks were hammered earlier this week on fears of a bubble, but Micron just obliterated those doubts with a blowout earnings report. With the cornerstone of the AI hardware supply chain—TSMC—also reporting strong earnings, this sell-off was a false alarm.

## Idea

On June 23, a global chip sell-off pushed the Nasdaq down 2.4% and caused many to doubt the AI boom. However, overnight data shows Micron's revenue quadrupling, driving a massive rally across the sector. Strong earnings from TSMC further prove that the AI demand cycle is real. The combination of pre-existing panic selling and overwhelmingly strong fundamental data from both the memory (Micron) and manufacturing (TSMC) sides of the market creates a perfect catch-up trade for the stocks that were unfairly punished.

## Key details

- Symbols: MU, SMH, TSM
- Timeframes: D1
- Tags: \#chips, \#AI, \#dip\_buy, \#earnings

## Community

- Upvotes: 9
- Views: 0
- Copies: 0
- Cosigns: 0

## News sources

- [Strong Earnings Demonstrate Taiwan Semiconductor Manufacturing Company Limited's (TSM) Key Role in The AI-Capex Cycle](https://finance.yahoo.com/markets/stocks/articles/strong-earnings-demonstrate-taiwan-semiconductor-165551769.html) — Yahoo Finance
- [Nasdaq Tumbles 2.4%. A Chip Selloff Grips Wall Street.](https://www.barrons.com/livecoverage/stock-market-news-today-062326/card/nasdaq-tumbles-2-4-a-chip-selloff-grips-wall-street--E9dfNgPLfK8q0JKHBtwN?siteid=yhoof2&yptr=yahoo) — Barron's
- [Micron Soars 17%, SanDisk Jumps 15%, Western Digital Climbs 13% After Blowout Quarter Locks In $100B of AI Memory Demand](https://finance.yahoo.com/markets/stocks/articles/micron-soars-17-sandisk-jumps-132001688.html) — Yahoo Finance

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