Memory chip shortage is here to stay — buy the dip on AI hardware stocks after t
Thesis
Micron's blowout earnings confirm a $100 billion wave of AI memory demand, yet a broader global tech sell-off is dragging Micron, Nvidia, and SanDisk down indiscriminately. This panic is spilling over into device makers like Apple, who are being forced to hike consumer prices just to cover rising memory costs. Because the underlying demand for AI infrastructure remains massive, this market-wide rout offers a classic dip-buying opportunity for the memory chip suppliers at the center of the boom.
Strategy approach
Build a rule-based strategy that enters long MU on D1 after three consecutive daily closes lower (reflecting the broad tech sell-off dragging the stock down), provided the 14-day RSI is below 40 and the stock is still trading above its 200-day moving average. Exit when the stock closes at a new 10-day high, with a 8% hard stop loss.