[Wednesday This or That] A Stock Down 30% or One at an All-Time High?
Every Wednesday, we’re putting two investing choices
Here’s today’s matchup:
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A | A company you like, but the stock is down 30% from its high
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B | A strong stock that has just hit a new all-time high
If you had to buy one today, are you picking A or B? 👇[Thinking][Thinking] $NVIDIA(NVDA)$ $Tesla Motors(TSLA)$ $OCBC Bank(O39.SI)$ $SpaceX(SPCX)$ $Micron Technology(MU)$ $SanDisk Corp.(SNDK)$ $SK hynix(SKHY)$
Drop your pick and tell us why for a chance to win some Tiger Coins [Allin][Allin] Rewards are limited, so get in early![USD][USD]
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I opt for MU.
Why MU is my #1
The important thing happening right now is that we're seeing a violent rotation within the AI trade, not necessarily deterioration in the underlying AI infrastructure demand.
On August 18, MU fell about 7% to $940.76, while NVDA fell 2.3%, SNDK 9%, and SK Hynix about 9%.
That's interesting because Micron's fundamentals are exceptionally strong.
Micron Technology
And Micron says AI/server demand is causing tight DRAM and NAND supply, with HBM4 ramping rapidly.
That creates a particularly attractive setup:
AI demand → more GPUs → more HBM → more memory content → pricing power → huge
The catch is that Micron is still a cyclical memory company. Today's enormous earnings can normalize if supply eventually catches up. So I wouldn't put the entire $10k into it.
thank you @TigerEvents and @koolgal for invitation 🙏 😘
$Micron Technology(MU)$ the premier US memory giant is down 28% as short term traders panicked over infrastructure pacing.
$Tesla Motors(TSLA)$ has plunged 26% lower as Wall Street temporarily forgot its autonomous robotics long game.
Choose Team B if you believe that strength begets strength & you refuse to catch falling knives.
Choose $NVIDIA(NVDA)$ the King of AI revolution if you trust that its multi billion data center monopoly will continue to prevail.
Choose $OCBC Bank(O39.SI)$ for a touch of financial safety as it has recently reached its all time high.
I choose A as it has a built in margin of safety. My top pick is Micron.
For me, names like $NVIDIA(NVDA)$ , $Tesla Motors(TSLA)$ and $Micron Technology(MU)$ can become especially interesting after a correction. A 30% drawdown doesn’t automatically mean the thesis is broken; sometimes it creates a much better risk/reward entry point, especially when I’m investing with a longer time horizon.
That said, I wouldn’t buy the dip blindly. I’d focus on whether earnings, cash flow and the growth story remain strong. My choice today: A — buy quality on weakness rather than chase strength. 📈
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