Overview of the US stock market on August 7

Today's biggest market risk event is the US nonfarm payrolls data. The nonfarm report acts more as a short-term sentiment test rather than a core driver of the AI technology sector's underlying trend.

If the data is market-positive, capital will likely continue to concentrate around AI-related themes such as memory storage, optical modules, and data centers. If the data disappoints and triggers a Nasdaq correction, it could instead offer new dip-buying opportunities for investors who previously missed the rally.

Memory Sector: Watch Micron and SK Hynix

Memory storage remains one of the key technology sectors to watch closely.

$Micron Technology (MU.US)$ Micron Technology (MU): If the non-farm payroll data triggers market volatility, consider watching for buying opportunities around the $800 level.
$SK hynix (SKHY.US)$ SK Hynix: Pay close attention to the $125 level; if the market undergoes further correction, this area could serve as a reference point for repositioning.

Investors who already entered positions at earlier lows are better off holding patiently and should avoid frequent trading driven by short-term volatility ahead of the nonfarm release.

Optical modules: Continue focusing on strong sector leaders.

Each recent market pullback has presented solid dip-buying opportunities in leading optical module stocks, indicating that investor conviction in this segment remains intact.

$Lumentum (LITE.US)$ Lumentum Holdings (LITE): Investors who previously established positions near $800 have already secured some gains. If the non-farm payroll report causes a market pullback, the $780–$750 range remains a clearly defined short-term support zone.
$Coherent (COHR.US)$ Coherent (COHR): If the stock continues to pull back, closely monitor potential support opportunities around the $300–$290 range.
$AXT Inc (AXTI.US)$ AXT Inc. (AXTI): The stock hit another阶段性新 high yesterday, maintaining a strong bullish trend. The $59 level is a critical risk-control point that should not be breached; for those seeking a more comfortable entry on a pullback, watch the area around $65.

AXTI exhibits high elasticity and significant volatility, making it suitable only for investors with a high risk tolerance, and only with small positions.

Data Centers: Awaiting sentiment release for NBIS
$NEBIUS (NBIS.US)$ Nebius Group (NBIS) plunged more than 10% yesterday, possibly impacted by news related to Michael Burry’s short position. However, this appears to be primarily short-term sentiment-driven noise and does not alter the long-term demand fundamentals for AI data centers.

As major tech companies continue to report robust growth in AI-related cloud revenue, data centers remain a sector worth monitoring over the long term.

Investors who have already established positions in NBIS near USD 200 are advised not to panic-sell based solely on a single-day decline. Should nonfarm payroll data weigh on the market and push the stock further down to the USD 175–170 range, this zone will warrant close attention—it can serve both as a reference for cost-averaging existing positions and as a re-entry point for investors currently holding no position.

Trading Strategy for Today

Nonfarm payroll data may indeed amplify intraday volatility today, but there's no need to revise the long-term outlook on the AI sector based on a single data point. Investors who have already built positions at lower levels should primarily hold and monitor. Those who previously missed the move can use the volatility triggered by the nonfarm data to seek new staged entry opportunities in leading names within storage, optical modules, and data centers.

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