The Memory Massacre: Has The Selling Gone Too Far?
From AI panic to squeeze?
The epicentre of the global AI trade has gone from euphoria to panic. Korean memory stocks have been crushed, hedge funds have aggressively cut exposure and valuations have fallen to extraordinary lows. Yet the underlying memory cycle remains remarkably strong, with demand outstripping supply and earnings estimates holding firm. Meanwhile, KOSPI has just printed a massive hammer off a critical long-term trend line. Positioning has reset, valuations are deeply depressed and fundamentals refuse to break. The ingredients for a violent squeeze are falling into place.