The Crash Is Here - Buy These Dips Now?!?
In a Nutshell
Markets lost $1 trillion today, with $541 billion from just six memory stocks after China revealed its own DUV chip-making machine—raising fears of oversupply and price collapse. Nvidia, SK Hynix, Micron, SanDisk, Western Digital, and Seagate all plunged 4-11% as investors worry about China's ability to build chip factories independently. Meanwhile, Michael Burry's semiconductor short, Nvidia's $700B+ AI financing exposure, and the Fed's unexpected rate-hike risk add pressure ahead of Wednesday's FOMC decision.
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The host recovered from over $2,000 in the red to $7,200 in the green trading Micron (MU) by selling the rips and buying the dips aggressively with large amounts of capital. The Nasdaq market lost approximately 0.25% of its value after being up 1.5% during the pre-market session.
Three primary factors are highlighted as driving markets lower, excluding the Iran news coverage.
$1 trillion has been wiped from the US market in the last three hours. 50% of that loss came from six memory stocks. US memory stocks are crashing on news that China has begun producing its own DUV chip-making machine. Investors worry that China can build more chip factories independently, adding supply and pushing memory chip prices down.
- Nvidia: down 4.3%
- SK Hynix: down 9.4%
- Micron: down 4%
- SanDisk: down 11% (at one point 14%)
- Western Digital: down 5%
- Seagate: down 5.5%
$541 billion was wiped out from these six memory stocks alone. Nvidia represents one of the most valuable publicly traded companies and took a 5% hit.
Nvidia's credit risk has jumped with the cost of insuring its debt surging to records. The company is reportedly discussing more than $700-750 billion in AI infrastructure financing tied to OpenAI. Analysts are warning that complex financial structures could increase credit risk.
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