Memory looks more fragile.
Memory/storage prices depend heavily on supply shortages. If Toshiba or other companies increase production, prices and profits could fall quickly.
Compute like NVIDIA, AMD and Broadcom has a stronger long-term driver: AI demand. Even if hardware supply improves, AI companies still need more computing power for training and inference.
However, compute stocks are not risk-free. Their valuations are already high, so slower AI spending could cause a sharp correction.
The weak jobs report is also important. If the economy weakens and the Fed cuts rates, that could support high-growth tech stocks—but falling yields caused by a recession would be a different story.
Bottom line: I would be more cautious about memory/storage because the shortage can disappear when supply increases. For long-term investors, I prefer profitable AI compute leaders over companies whose profits mainly depend on a temporary supply shortage.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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