Serenity: Still Bullish on Memory Stocks, Photonics Sector Focus Shifts Back to AXTI and LITE

Odaily Planet Daily News "White-haired Stock God" Serenity posted on X platform stating that he remains bullish on memory stocks such as MU and Samsung. In addition, the focus in the photonics sector this week has shifted back to AXT and Lumentum. The photonics industry has previously shown signs of supply tightness. Coherent ($COHR) and Lumentum ($LITE) laser capacity for the next two years has already been sold out. AAOI's previous earnings report also showed continued strong demand for optical modules.

Meanwhile, a large number of retail investors have been panic-selling in the storage sector. There are indeed some changes in the market right now—for example, Nvidia Rubin Ultra has been optimized for memory, and memory prices are no longer expected to rise as sharply as previously anticipated. However, at current prices: the operating profits of storage companies relative to their market capitalization remain extremely stretched, especially given that storage demand is experiencing structural growth. Moreover, the supply-demand imbalance next year could become even more severe.

Serenity stated that the market tends to panic when an industry declines and follows new narratives—for example, helium during the Iran war, the LNG market, and SpaceX's earnings call once again emphasizing storage supply tightness. In many cases, the industry bottleneck and fundamentals haven't changed significantly, but market sentiment has already undergone a dramatic shift.