$AMD(AMD.US)

This week's pullback is simply because it rose too much; don't blindly cut losses or average down.

Everyone needs to be cautious in June.

1. Stocks have risen too high.

2. The "balance sheet reduction shock" from the new Fed Chair (Warsh).

3. The massive valuation and capital drain from several mega-IPOs.

The market fears the "capital drain effect" of massive financing on existing funds the most:

SpaceX: Has already started its IPO roadshow this week, planning to raise at least $750 billion, targeting a valuation as high as $1.75 trillion. Although S&P temporarily refused to provide a fast track for its inclusion in the index (must be observed for 12 months and meet GAAP profitability requirements), its enormous size is still attracting offshore dollars and sovereign wealth funds from global institutions.

AI Duo (Anthropic / OpenAI): The following AI giants are also racing for IPOs, with market rumors suggesting fundraising amounts in the $600 billion range.

Mapping to the A-share market: Domestically, there are also major projects (like ChangXin Memory Technologies, Unitree Robotics) being promoted or approved. Although the overall fundraising amount is controlled compared to historical super IPOs, it resonates with the global capital preference and risk sentiment triggered by the actions of several epic tech giants in the US stock market.

4. Cyclical sectors carry the highest risk when the P/E ratio is lowest and the lowest risk when the P/E ratio is highest.

Memory is essentially a cyclical sector.

5. The Dragon Boat Festival Plunge. As this year's Dragon Boat Festival holiday (June 19-21) coincides with the mid-month and mid-year liquidity settlement nodes, the market itself faces liquidity assessment pressure across the holiday and mid-year.

This is a summary from a financial program I watched after work.