'New Stock God' Remains Bullish on Memory, Says Photonics Fundamentals Intact

ChainCatcher reports that the investor known as the 'New Stock God' is sticking with a bullish view on storage/memory names such as Micron and Samsung. In their view, the market keeps rotating between various supply bottlenecks, and the underlying story has not cracked. Photonics names including AXTI and LITE have re-emerged as this week's focus. The 'New Stock God' points out that, relative to the July decline, the most visible shift is in share prices rather than in narratives or operational updates. When stocks fell in July, the market was already fully aware that COHR and LITE had sold out their laser products for the next two years, and that AAOI's latest earnings call had flagged demand imbalances. Excluding post-liquidation changes in stock prices, the photonics sector's fundamentals have not deteriorated. The bottlenecks in optical transceivers and indium phosphide substrates remain intact, and may have intensified. On memory, the commentator sees retail investors capitulating now. But the very same crowd turned extremely bullish after MU signed 16 SCAs and delivered strong outlooks. The 'New Stock God' argues that the current ratio of memory operating profit to market capitalization is 'extremely unreasonable,' and that demand imbalances could be even more severe next year. For the same companies, what has changed is simply valuation and narrative; the market just rotates across sectors.