Chasing Sandisk and Micron May Be Hazardous to Your Portfolio
This article is from the weekly Barron's Tech email newsletter. Sign up here to get it delivered directly to your inbox.Sentiment Shift. Hi everyone. Narratives can change fast.Not long ago, investors were despondent as stocks related to artificial intelligence pulled back on bubble fears and worries about potential overcapacity. FUD ruled the day.A few weeks later, traders seem to be jumping over themselves to buy the riskiest, highest-beta AI momentum plays: commodity memory stocks. Memory chip maker Micron Technology and flash memory company Sandisk are both up more than 40% over the past month. FOMO is now the word.There is a better way to invest in the chip sector. I've written repeatedly about the investment philosophy of TCI Fund Management founder Christopher Hohn, one of the most successful investors over the last two decades. His investment philosophy takes a long-term view by finding companies with sustainable moats that provide an irreplaceable se