Posteo

📊 AI Demand Is Still Strong — But Beating Expectations Is Getting Much Harder The latest earnings from the memory and storage sector highlight an important shift: strong AI demand alone is no longer enough to push stocks higher. Western Digital reported around $3.75B in quarterly revenue and $3.56 in adjusted EPS, yet the stock still came under pressure. SanDisk delivered an equally strong quarter, with roughly $8.97B in revenue. But expectations were already extremely high. Investors weren’t simply looking for strong results — they wanted guidance pointing to another acceleration in growth. That tells us a lot about where the market stands today. The question is no longer whether AI will drive massive demand for memory and storage. That thesis is already priced into expectations. Now the market wants to know whether manufacturers can sustain: 🔹 Pricing power 🔹 Tight supply 🔹 Expanding margins 🔹 Strong, durable earnings growth —all while supporting valuations that already assume years of aggressive AI-driven expansion. AI demand can stay strong and stocks can still struggle if expectations are even stronger. #AIMemorySelloffEases #BTCETHETFInflowsReturn #SpaceXShortCovering