$Sandisk(SNDK.US)$Micron Tech(MU.US)

Mid-term trend bullish!

Hello friends of SanDisk and Micron Technology!

Today, let's talk about some hot topics on AI computing power recently, ignoring GPU and CPU.

1. Regarding AI infrastructure, there are always bubble theories from time to time, with short articles flying everywhere. Essentially, it's a game in the capital market, not a problem with AI development. Have you noticed that it's the last few days of the first half of the year? Nasdaq has fallen for five consecutive days this week, with huge trading volume in the week following the triple witching day.

2. Regarding storage, price increases are market behavior. The demand for storage technology and production in the AI era is no longer the logic of the consumer electronics era. Don't keep thinking about the past; face the future. Micron Technology's earnings call mentioned that the storage demand of a humanoid robot is 10 times that of an L2 autonomous vehicle, indicating that physical AI is a blue ocean for storage. Linearly expanding capacity cannot meet the parabolically growing demand. Where is the cycle!

3. Regarding the bottlenecks and technical paths of AI computing power: Everyone knows the bottleneck is not GPU or CPU, but storage and optical transmission. The first storage implementation is memory HBM, which has already been applied to HBM4. The second is SanDisk's HBF, followed by SanDisk's abbreviated USB2 patent, which stacks FLASH under the GPU through the unique CBA bonding process from Kioxia and SanDisk to work together with HBM to improve computing efficiency. These are the ultimate current paths for storage. Special reminder: HBM, HBF, and the USB2 patent are not substitution relationships, but division of labor and collaboration relationships. The second is optical transmission. Existing optical modules will evolve into NPO and CPO in the future. The principle is similar to storage, where optical chips and optical engines get closer and closer to the GPU for co-packaging, improving transmission efficiency and saving energy. This introduces a new demand ~ advanced packaging. Process is process, packaging is packaging, both are equally important in the future. I won't elaborate on that today.

Summary: The future demand for storage chips is not just from big companies and Eastern AI infrastructure. The demand for physical AI is a blue ocean. The demand for computing platforms drives the advancement of storage technology. Here, SanDisk has already captured the future commanding heights. So far, the increase in SanDisk's stock price is still supported by performance valuation. The valuations of SanDisk and Micron Technology are currently the lowest among US tech stocks, with no future component factored in. So, where will SanDisk's stock price rise to in the future? Open your imagination! The future is infinitely beautiful!

/// I've attached three charts: the trend charts of SanDisk and Micron Technology, and the Nasdaq index chart. It's clear at a glance.