AI hardware giants are getting tossed out with the tech sell-off — long TSM and Micron on the dip
The companies that actually make the physical building blocks of artificial intelligence—chips and memory—are reporting massive sales growth. But because the overall tech sector is being dumped by nervous investors right now, these strong companies are getting dragged down to cheaper prices alongside weaker stocks.
Idea
We are seeing a divergence between AI business results and market pricing. TSM just demonstrated its crucial role in the AI supply chain with strong earnings, and Micron upgraded its revenue forecast so significantly that analysts are questioning if it could be worth $2,500 per share. However, both stocks are falling because the broader market is panicking. With even non-hardware tech stocks like Palantir down 30% this month out of general fear, the market is selling everything tech-related indiscriminately. This creates an opportunity to buy the actual winners of the AI boom at a temporary discount.
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News sources
- Micron Skyrockets After Huge Revenue Upgrade - Could MU Be Worth $2,500 Per Share? — Yahoo Finance
- Strong Earnings Demonstrate Taiwan Semiconductor Manufacturing Company Limited's (TSM) Key Role in The AI-Capex Cycle — Yahoo Finance
- Why Palantir's stock is having its worst month in years — even in the midst of an AI boom — MarketWatch
- Stock Market Today: Nasdaq Slides Amid Global Technology Sell-Off; Micron, Nvidia, Sandisk Fall (Live Coverage) — Investor's Business Daily