Is it too late for the memory stocks?
Short answer: Not "too late", but "late" = higher risk. Memory supercycle still running to 2027, but you missed the 3x move. Now you need entry plan, not FOMO.
Is it too late? Reality check:
Yes + No
1. Yes, too late for easy 300% gains. Micron +850% in 12mo, SK Hynix +1000% in 12mo. That move is gone.
2. No, not too late for trade*: Supply shortage expected to continue through 2027. HBM prices rising 20-30% in 2026. Morgan Stanley sees DRAM/NAND prices +20% this quarter.
$GOOGL got smoked today. Closed $348.78 -5.08%
*Why Google was down Monday June 22:
*3 main reasons:*
*1. AI brain drain - biggest driver*
Top DeepMind talent jumped ship to rivals:
- *John Jumper* - Nobel Prize winner, AlphaFold co-creator โ left for Anthropic
- *Noam Shazeer* - Gemini co-lead โ left for OpenAI
Wall Street hates this. โRaising concern that Google is losing the war for talent at the frontier of AIโ. Market lost โผ$270B in market cap.
*2. $80B equity raise = dilution fears*
Alphabet announced $80B equity offering to fund AI infrastructure.
- $30B underwritten stock + convertible preferred
- $40B ATM program to sell shares gradually
More shares = your slice gets smaller. Investors donโt like dilution. Even Berkshire paid $351.81 / $348.20 per share - below Monday close, and now stock is cheaper than that.
*3. AI spending anxiety*
CapEx for 2026: $180B-$190B planned. โMarket drawing sharp line between AI spenders and AI earnersโ. Massive spending hurts margins, benefits Nvidia/Micron instead.
*Bonus:* Waymo recalled 3,871 robotaxis after software glitch. Adds to โexecution riskโ fears.
$GOOG: $348.78 -18.68 -5.08%* close
Day range: $341.72 - $358.92. Volume 52M vs 32M avg = panic selling.
*Bottom line*: Market thinks Google losing AI lead + printing shares + spending $190B = margin compression. Long term still strong, but short term = pain.