Memory-related stocks like SanDisk () and Seagate Technology () improved this week, which demonstrates that every dip is a buying opportunity in fundamentally superior stocks.
The other reason that memory stocks have firmed up is that South Korean memory company is raising $28.07 billion in its IPO. Specifically, SK Hynix is planning to sell 17.79 million ADR shares traded on NASDAQ. Institutional investors immediately signaled indications of interest for up to $7 billion for the SK Hynix IPO, but I suspect there will be much more demand due to an acute global memory shortage attributable to the boom in AI data centers.
The other interesting development this week is that SpaceX () is being added to the , but its weight will be restricted due to the fact that the IPO only sold 5% of its outstanding shares. As SpaceX unlocks stocks for insiders, the number of shares outstanding will rise, and its weight in the NASDAQ 100 should naturally increase. However, in the meantime, SpaceX’s percentage in the NASDAQ 100 is being restricted due to its relatively thin float.
Bears continue to try to throw cold water on the AI boom. British investor Jeremy Grantham, who is a perma bear, said on CNBC’s Squawk Box that “Based on the value of the stock market compared to GDP, with modifications, this is the most expensive market in American history.”
First, Jeremy Grantham is a bond investor who has never liked stocks, to my knowledge. Second, Jeremy Grantham clearly does not look at earnings growth, order backlogs, analyst earnings revisions, earnings surprises, and forecasted price-to-earnings ratios. Being such an un-American, negative naysayer is shocking. I should also add that Joe Kernan gave Jeremy Grantham a hard time and pointed out that he has been bearish since 2010 and wrong with his market forecasts.
As always, we are locked and loaded for another earnings announcement season. The second quarter was the best-performing quarter for both the and the in the past six years, so expectations remain very high since economic growth is clearly accelerating. My favorite economist, Ed Yardeni, pointed out that we are in the midst of a FOMO (Fear of Missing Out) market and that industry analysts are estimating that the S&P 500 will post 26.1% annual earnings growth for 2026 and 17.8% for 2027.