Q1/Q2 expectations became too aggressive and markets are repricing the slope of growth.
Concerns have emerged about AI memory efficiency improvements and next gen compute architectures. This has reduced the rate of memory growth, not the direction.
Spot pricing showed short term weakness. This is typical during mid cycle digestion.
More importantly, the market is not questioning whether AI driven memory demand continues, only whether the previous pricing curve was too steep.
So what is the tactical move? Buy dips or take profits?
I would take profits first and then buy dips selectively.
Why? Because the current correction is a valuation reset, not a fundamental break.
This means that stocks can fall further even while fundamentals remain strong. You want to avoid catching a falling knife and have dry powder ready for the next relay up.
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# stocks can fall further even while fundamentals remain strong.
# take profits first and then buy dips selectively