Investors should continue focusing on leading companies in memory storage, optical modules, and AI power infrastructure, waiting for pullbacks to gradually build positions.

Signs of easing tensions in the Middle East have led to a notable decline in international oil prices during Asian trading hours, helping to alleviate market concerns about inflation and interest rates. However, stabilization in the broader indices does not mean all tech stocks will rise in unison. The real opportunities for sustained strength will continue to lie with AI hardware leaders that demonstrate clear earnings visibility, robust order backlogs, and consistent capital inflows.

Please refer to the updated recommendations for recently highlighted individual stocks!

Memory sector: Prioritize Micron Technology and SK Hynix

The memory segment remains a key area of focus. Compared with SanDisk, Micron and SK Hynix exhibit relatively more stable price action, making them better suited for phased accumulation.

Micron (MU): Previously rebounded from around $730 to $930, registering significant short-term gains. Profit-taking after such a rally is normal. Currently trading near $830, it may be suitable for phased re-entry. As long as the stock holds above the $730 low, the overall rebound structure remains intact, with an upside target range of $950–$970.

SK Hynix: The area near $125 has become a key launch point for this rebound cycle. Should the stock retest around $140, it could present a phased entry opportunity, with a rebound target of $165–$170.

SanDisk (SNDK): Offers the highest elasticity but also comes with greater volatility and uncertainty, making it more suitable for investors with higher risk tolerance.

Optical modules: Underlying industry demand fundamentals remain unchanged

LITE’s management reiterated that gallium nitride supply will remain tight over the next six to twelve months, and the company has already made advance payments to secure future capacity from AXTI. This indicates that demand for 1.6T optical modules and related upstream materials has not diminished despite recent stock price corrections.

LITE: The level around USD 600 has largely confirmed as a short-term low. For those still bullish on the optical module segment, consider taking smaller positions, using USD 600 as a key risk control reference, with a rebound target of USD 860–900.

TSEM: Remains one of the notable suppliers in the industrial chain. The area around USD 190 served as a key launch point for this market move. Should you choose to participate further, position sizing should be controlled, with an upside target of USD 260–280.

For investors unwilling to bear the high volatility of AI hardware, I offer a new direction.

Catch-up opportunities in power and energy storage sectors.

GNRC as an energy storage play: After consecutive adjustments, its share price has returned to a relatively low level. With ongoing data center construction, demand for power and energy storage still has room to grow, with an upside target range of USD 230–240.

VST benefits simultaneously from nuclear energy, power, and data center demand. Compared to AI hardware stocks that surged earlier, its current valuation remains relatively modest, with a near-term target range of USD 170–180.

Summary

The Nasdaq has repeatedly found support near the 25,000 mark, and easing tensions in the Middle East have also brought positive sentiment to the market. However, not all tech stocks will rally together going forward. Investors should continue focusing on leading names in memory, optical modules, and AI-related power infrastructure, and gradually build positions on pullbacks.

The views and opinions expressed herein do not represent Futu's position in any way and do not constitute investment advice related to Futu. Before making any investment decision, investors should consider the relevant risk factors of the investment product based on their individual circumstances and consult a professional investment advisor when necessary. Futu shall not be held liable for any actions taken based on all or part of the content of this video or for any resulting losses. The market involves risks; please invest prudently.
$Nasdaq Composite Index (.IXIC.US)$$Micron Technology (MU.US)$$Lumentum (LITE.US)$$Tower Semiconductor (TSEM.US)$$Generac (GNRC.US)$$SK hynix (SKHY.US)$

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