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, market stabilization does not mean all tech stocks will rise in unison. The stocks with genuine potential for sustained strength remain those AI hardware leaders with clear earnings visibility, robust order backlogs, and consistent capital inflows.

Updated recommendations for recently highlighted individual stocks—please refer to the latest guidance!

Memory sector: Prioritize Micron Technology and SK Hynix

The memory sector remains a key focus area. Compared to SanDisk, Micron and SK Hynix exhibit relatively more stable price action, making them better suited for phased position building.

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

SK Hynix: The $125 level has become a key launch point for this rebound cycle. Should the stock retest the $140 area, consider phased entry opportunities, with a rebound target of $165–$170.

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

Optical modules: Underlying demand fundamentals remain unchanged

LITE 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 production capacity from AXTI. This indicates that demand for 1.6T optical modules and related upstream materials has not diminished despite recent share price corrections.

LITE: The area around $600 has largely been confirmed as a short-term low. If remaining bullish on the optical module sector, consider reducing position size and using $600 as a key risk control reference, with upside targets at $860–$900.

TSEM: It remains one of the suppliers worth watching in the supply chain. The $190 level is a key breakout point for this rally. If continuing to participate, position sizing should be controlled, with upside targets at $260–$280.

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

Catch-up opportunities in power and energy storage sectors.

GNRC—a stock focused on energy storage—has returned to a relatively low price level following consecutive adjustments. With ongoing data center construction, demand for power and energy storage still has room to grow, with upside targets at $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 $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 rise 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. Investors should consider the relevant risk factors of any investment product according to their individual circumstances before making any investment decisions and consult professional investment advisors when necessary. Futu assumes no liability for any actions taken based on the full or partial content of this video or any resulting losses. The market involves risks; 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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