Western Digital, along with other memory companies, may see significant downside as current profits are unsustainable due to industry cycles.
Source Post
Why Memory Stocks Could Fall 80% Or More!
Jul 15, 2026
The creator argues that memory stocks, specifically mentioning Micron and SanDisk, are at risk of significant downside (80% or more) due to unsustainable abnormally high margins. The thesis suggests that current high margins are a temporary phenomenon in a cyclical commodity business, and a low P/E multiple, often seen as positive, could signal long-term disaster if margins revert to historical norms.
Linked Mentions
Tickers discussed in this post
Apple's recent price increases on some products may lead to reduced demand as consumers delay purchases due to higher costs, impacting memory demand.
SanDisk, like other memory stocks, faces potential downside due to unsustainable high margins and cyclical industry economics.
Micron's stock could fall 80% or more as its current abnormally high margins are unsustainable in the cyclical memory market.