Memory Prices Cool, but AI Valuation Risk Takes Center Stage
Memory prices are worth following.
The clear trend is that the parabolic rise in prices ended in April/May for most of memory.
Possible Q3 revenue is down sequentially for memory-makers. (depending on how much of sales is spot)
The biggest risk in the market right now is multiple compression.
Any blip in revenue growth or margins and these multiples can come down really fast. There's trillions in value riding on hyperscaler capex growing for the foreseeable future...
$NVIDIA(NVDA)$ $Apple(AAPL)$ $Alphabet(GOOGL)$ $Broadcom(AVGO)$ $Tesla Motors(TSLA)$ $Micron Technology(MU)$ $Eli Lilly(LLY)$ $Advanced Micro Devices(AMD)$ $Visa(V)$ $Intel(INTC)$ $Applied Materials(AMAT)$ $MasterCard(MA)$ $Lam Research(LRCX)$ $ARM Holdings(ARM)$ $Palantir Technologies Inc.(PLTR)$ $KLA-Tencor(KLAC)$ $Palo Alto Networks(PANW)$ $Texas Instruments(TXN)$ $SanDisk Corp.(SNDK)$ $Marvell Technology(MRVL)$
IMO, portfolio diversification is more about psychology than math.
If you own <5 stocks, it's easy to be emotionally attached to them, which clouds your judgment.
If you own 20-30 stocks, it reduces emotional dependence and gives a wider view of the investing world.
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