In recent days, everyone has been watching Samsung's earnings and the rise and fall of Korean stocks, but I think the most overlooked line is that Apple has started testing CXMT's DRAM chips, intended for use in devices for the Chinese market.

CXMT used to be three generations behind and unreachable. Passing Apple's verification threshold shows its technology has arrived. The moats of Samsung and SK Hynix in the Chinese market are beginning to show real cracks.

Regarding the fact that Western Digital and SanDisk fell over 7% in a single day, with average storage prices up over 40% and earnings beating expectations, why sell? Morgan Stanley's Wilson gave the answer: capital is rotating, from companies selling chips to companies using chips.

The AI demand of data center operators is structural, while the storage price increase is cyclical. Capital feels this story is over and moves on to the next. The Philadelphia Semiconductor Index rose 4.2% last week and fell 4.65% this week, giving back all gains in two trading days. It's not that fundamentals changed, it's that money left.

SK Hynix's $29 billion ADR will be listed on Thursday, a very delicate timing. The sentiment in Korean stocks has already played out. The intraday drop of over 3% on the 8th followed by a rebound looks more like a capital allocation before the ADR listing. What pricing will this batch of incremental funds from the US market give? We'll see on Thursday.

DYOR. Not investment advice.