$Sandisk(SNDK.US)$Micron Tech(MU.US) are bullish in the medium term, with short-term adjustments drawing K-line charts!

The weakness in SanDisk and Micron Technology's performance on Friday was obvious at a glance. The adjustment is not over yet, and pre-market rumors had a significant impact.

***** Market rumors suggest that Micron Technology's HBM4 supply to NVIDIA has been hindered. I searched carefully over the past two days, and the rumors are basically true. This will affect Micron Technology's HBM4 share at NVIDIA. Micron's increased investment in Singapore and acquisition of factory sites in Taiwan aim to regain market share at NVIDIA with HBM4e.

These have no impact on Micron Technology's performance and financial statements this year because Micron's production capacity for this year has been fully sold out, and it can only meet 50%-70% of the demand from several top customers. While NVIDIA reduces its use of Micron's HBM4, it is purchasing large quantities of Micron's LPDDR5X memory for VeraCPU. HBM4 remains in short supply in the market. ///

***** SanDisk's performance is a normal technical adjustment. Starting on January 2nd, it surged 200% in one go. Short-term high levels have seen continuous high volume and loose chips. How it adjusts depends on a combination of fundamental and technical factors. Currently, it looks positive. It's not advisable to make more judgments in the short term, but the medium-term trend remains unchanged.

***** SanDisk's current stock price corresponds to a forward P/E ratio of about 6x for the 2026 calendar year, while Micron Technology is around 8x. Of course, this is a conservative estimate. The stock price increase is not driven by sentiment. SanDisk's more impressive performance will come in the middle and second half of the year: The K2 factory, a joint venture with Kioxia in Japan, is now basically at full production. Launching HBF based on the massive growth in shipments of high-end SSDs using the Bics8 process—this is SanDisk's milestone event!