Following last week's memory stock selloff, SNDK stock was down 4.9% for the week, MU stock fell 5.66%, and WDC stock dropped 2.92%. Today's broad-based gains suggest investors treated that pullback as a buying opportunity rather than a signal of deteriorating fundamentals. The central investment thesis remains intact: artificial intelligence (AI) infrastructure buildout is driving insatiable demand for NAND flash memory and high-capacity hard disk drives.
Nvidia is a fabless semiconductor company. It designs chips, outsources manufacturing to TSMC, and sells the resulting hardware to hyperscalers and enterprises racing to build AI infrastructure. Oil prices don't show up anywhere in Jensen Huang's risk factors. China export controls do. TSMC supply chain concentration does. Oil? Not once.
The chipmaker delivered better-than-expected results and projected current-quarter revenue above consensus, citing continued robust spending by major technology firms on AI infrastructure. Management emphasised that generative AI represents a structural shift in computing demand and signalled that, despite supply constraints at TSMC, Nvidia was able to secure the components needed to meet demand.