This Is EXACTLY Why AI Stocks Are Exploding Today (Micron, AMD, Sandisk, & More)

Well, well, well. It has been an uh an interesting day in the stock market to say the absolute least as we have AI stocks going absolutely parabolic right now, draining the entire market of liquidity. I mean, look at this dude. We got Nvidia up 2.7%. Nothing super crazy, but we got Micron up 15%, AMD up 13%, Intel up 13%, LRCX up 21%, Applied Materials up 15%. SNDK, our little buddy, our little friend SanDisk up 22%. We made a nice little trade on SanDisk earlier. We did it on the live stream yesterday. We closed it out on the live stream earlier this morning. 42% gain we made on SanDisk in about 12 hours. So, a nice little trade there on SanDisk. We got Dell up. We got Western Digital. We got that bad boy up as well. And the big boy, the big boy, folks, Microsoft up 15% on the day following that earnings report that they released yesterday. I tell you what, that position of Microsoft in the brand new hyperscalers portfolio is looking real nice. As you all know, I've deployed about $2,000 into Microsoft over the last week. That's already up about 16%. Now, is it going to last? I have no idea. But in the moment, it feels good, baby. And this is a wild, wild start to the day. Now, I know a lot of you are wondering, Tyler, what is going on? Why in the world are these stocks up? Why are they draining the market of liquidity? What is happening? And some of you probably woke up this morning, went on Google, why are AI stocks pumping? Went on Google, Micron stock news, AMD stock news, and you probably really didn't find anything. You probably didn't really find anything that made sense as to why AI stocks are pumping. And so you're watching this video going, "What in the world is going on?" And so, because many of you are probably confused as to how this is playing out, what I wanted to do in today's video is just give you my theory because I'm going to be honest, there isn't a clear piece of news. There's not one specific thing that was really good news for the AI industry that caused this pump to happen this morning. Not that I've seen at least. But we have seen some dominoes falling, some events that are all connecting, all perfectly timed to allow for something like this to happen. And I think that is why this is happening. And I know that sounds a little bit confusing. Just give me the video. It'll all make sense. So, what we're going to do in today's video is simple. I'm first and foremost going to walk you through my theory, why I think we're seeing this happening. Then, we're going to take a look at what we need to be on the lookout for next. Because although this feels good, we are not back quite yet. And then I'll walk you through some of the things that I'm doing in my own portfolio right now as a result of what we're seeing in the market today. Okay. So, we have a good bit to get into today. I do want to remind you all I am going to be doing a live stream later today at 2 PM Central Standard Time going over the Amazon and Apple earnings news. So I need to get ready for that, but I wanted to drop a video for you all anyway now that we are seeing a crazy move from the market today. So let's talk about why we are seeing this going on. So this in my opinion is a mixture of a few things. So what I'm going to do is just throw those things at you real quick and then I'm going to bring them all together. Okay, let me just walk through it. First and foremost, we saw a good day for the Cosby. Okay, if you actually go look, the Cosby, which is the South Korean composite, was down 1.2%. Now, you may say, Tyler, that's not a good day. Oh, yeah, it is. Considering the fact that over the last 5 days, they've been down 20%. This thing has been nuking. And at one point earlier today, we actually saw the Cosby in a deposit of about 9 or 10% nearly back up to 6,000 bucks, folks. So, or 6,000 in general. All in all, it was a pretty decent day for the Cosby and a lot of people feel as if maybe that massive capitulation that it just went through, we could be on the better side of it in that leverage could have, you know, maybe the leverage has been washed out of the the South Korean exchange, which I know you may say, Tyler, why does the South Korean stock exchange matter so much for Micron and these stocks? Because the Cosby is majorly composed of memory stocks being SKHEX and Samsung which are directly tied into of course all of them AMD uh Micron etc SanDisk etc. So very important to pay attention to what's happening over in South Korea because their leverage their leverage is a part of the reason as to why memory stocks and semis pump so much and it's exactly the reason a part of the reason as to why they've dumped so much. So we had a bit of a better day over there. It eases the nerves. Speaking of easing the nerves, over the last 24 hours, we've gotten our nerves eased a little bit in the market in multiple different places. The first one, the Fed FOMC meeting, they didn't raise interest rates. 70% chance was that they weren't going to, but there was enough of a chance that they gave us a surprise hike that the market was a little bit worried that that was going to happen. And you saw those jitters, you saw those nerves in the market. And so, of course, that was that was um that's not an environment that's conducive for growth. when you have people nervous and worried, you're not going to see AI stocks performing super well because they're high beta plays, right? So, we saw those worries kind of get erased a little bit. They said, you know, we'll kind of wait it out, see how it plays out. Now, some people didn't like that response, but at least they didn't raise, which would have then the market was worried about. Okay, that would have been a surprise hike, and you don't get those very often. That would have concerned the market. In addition to that, earlier this morning in the same little boat, we got PCE data. DCE data came in exactly as analysts were expecting, not higher, not lower. And usually that would be a neutral thing, but this time was a bit different because you saw the rumors. I'm sure you saw it. People were going around saying, "Hey, I think PCE data is coming in worse than analysts are expecting tomorrow." I think what we saw back in June was just an appetizer for what we're seeing in July. So, don't be surprised to see June come in worse than expected, reverse that CPI data, and that's going to put the market in a worried spot. like, "Oh, the Fed's going to have to raise interest rates in the next meeting." You saw all those messages. You saw all the headlines. Well, guess what? PCE data came in exactly where analysts were expecting, which makes everyone go, "Okay, we were tripping, right? We may maybe we were getting a little bit out of control there. We were getting a little bit worried." Now, something that is worth considering is that one, the PCE data that we got was from June. That was before oil prices went up. So, it's outdated information anyway. It really wasn't all that important, but it's the fact that the market was nervous about it. Think about everything I'm saying. Everything here was the market was nervous about this. The market was nervous about this. The market was nervous about this. A lot of these things that the market was nervous about, whether it be the Cosby, whether it be about the FOMC, whether it be about PCE, their their nerves have been eased a little bit. Okay, that really helps high beta stocks like AI. Then you add on a piece of news because then when you give it a piece of news, that could be a catalyst needed to take it going from, you know, the nerves being eased to people actually wanting to buy. And the news that I think is what actually triggered this cascade upwards was the Microsoft news. Now, this is going to sound very counterintuitive, so I need you to follow me here because I'm going to get a little bit confusing. Microsoft announced, listen close. Microsoft announced that they were not going to be raising their guidance for fiscal year 2027 on capex. meaning that the amount of money that Microsoft said last quarter that they were going to spend on capex is what they're sticking to. They were the first of the hyperscalers to not say, "Yeah, we're spending more money than we expected on the AI infrastructure buildout. We're going to spend what we said we were going to spend." They're the first ones to not raise their capex guidance. Now, naturally, some of you are going to say, "Hold on, Tyler. Walk it back. That doesn't make sense." Because if Microsoft isn't going to continue to accelerate their spending, if they're not going to spend more and more and more on AI, they're just going to spend what they said they were going to spend. Isn't that bad for AI stocks? Isn't that bad for a semis? Isn't that bad for an AMD, who of course is a service provider for or, you know, a producer for for Microsoft, right? Isn't it bad for these sorts of companies? Technically, yes, it is. But again, you remember I told you it's going to sound counterintuitive. What I think is happening and this is something we talked about on the live stream earlier is that the market was pricing in this happening. The market was expecting this to happen. The market started to expect that these hyperscalers were going to have to slow down on the capital on the capital expenditures. They were going to have to not that they were going to start cutting capex but that they weren't going to keep climbing and climbing and climbing. And so it was almost like you know you know how a buy the rumor sell the news event is where there's like a good piece of news or a good rumor going around like a big piece of news is coming soon. So the the stock price of something may climb climb climb but when that actual good news happens the stock price crashes because it was already getting priced in. Flip it. So yes, this could technically be bad news for something like an AMD but I think that was getting priced in already. Same thing with Micron. I think it was getting priced in already. And now that it's actually happened, the market can go in and start repositioning itself to absorb the idea that these hyperscalers are going to potentially be not they're not even cutting capex. They're just not continuing to raise their guidance on it. And so it's like the opposite of the buy the rumor, sell the news events. It's like a sell the rumor, buy the news sort of event. And when you combine that sort of event of this being priced in with these easing of nerves that are happening in other places, while these stock prices are getting very overextended to the downside, you can end up in a spot where they pop. You can end up in a spot where they pop and they shoot up 10 15% towards the top side. Another thing that's worth at least mentioning or considering is the fact that also I guess when you think about it is that Microsoft deciding that they were not going to keep doubling down and spending more and more and more on capex that also probably eased the nerves of the market a little bit because there are people in the market who are sitting here going are these major companies going to spend themselves to death? Is that what's going to happen? Are they just all going to spend themselves to death? And a lot of people haven't felt very confident in some of these Mac 7 companies. confidence has been restored in a company like Microsoft, especially if they after they talked so much about the benefits of AI. And I know meta made people nervous, but that's a meta problem. People look at Microsoft and go, "Oh, that's a good sign for the rest." And it opens the door for the rest of these other hyperscalers to peel back. They don't have to just keep raising capex guidance day after day, month after month after year. They can kind of start keeping it to their guidance or keeping expectations and look at how the market will reward them. Microsoft's pumping like crazy because of this news because people have are getting reinstilled faith that they're not going to spend themselves into a death spiral. So that's just another reason as to why the market's feeling more confident, as to why the market's feeling more secure. And so when you mix all of these things together and you mix in the fact that these AI stocks were getting beaten down, beaten down bad over the last few weeks, it can be the perfect formula to do you to to go back towards the upside because remember the market will always do the most irrational response possible. And so yeah, it makes a lot of sense. And so that's why when you look at a micron, you see it running up from the bottom that it put in back here. Let's just go out to the 4-hour charts. Yeah, you can see something like this in which a micron runs up 20% towards the upside. The same thing with a SanDisk, for example. A SanDisk that was getting extended down into its quote unquote uber bearish zone can run up 28% after something like this. Nvidia wasn't really getting beaten down that bad recently. It kind of started to just go sideways a bit between 210 and 195, but even that can be a little bit positive. Or an AMD can push back up towards a 490 as a result of this. This is the exact sort of environment that can cause these stocks to rally, that can cause these stocks to pump. And we knew it was possible. I didn't know this was coming, but we definitely knew it was possible, especially knowing that they were getting overextended. You know, use Sandisk as an example. If you were on my 5 hour live stream yesterday, we did a 5-hour live stream yesterday, by the way. If you're on the 5-h hour live stream, you know, I was looking at SanDisk and I was looking at Micron and I'm saying, "Hey guys, these things are getting overextended to the downside." And all it's going to take is one small thing that could send them back to their trends. We could see a Micron try to pump back up towards 900 or a SanDisk try to pump back up towards 1,200. It can happen out of nowhere. So, I actually just went in very small amounts of money and I opened up some small long trades on something like SanDisk. I entered in 3x leverage long trade and look, 42% gain on this SanDisk trade, right? And again, it wasn't a lot of money, but still it's a 42% gain. We made a 9% gain on the micron trade as well just because we recognized like, hey, they're getting over overextended to the downside. It might just take something small to pop them right on back up. So, when you mix in the fact that they were overextended to the downside, nerves were getting eased a little bit after every single piece of news and then Microsoft basically pulled the buy the sell the rumor, buy the news plug. Boom. You're in a spot like this today where it can start to pump. So, no, it's not like this very clear, rational reason as to why they're going up. You didn't get a good piece of news that caused them to go up. And that's why you have to pay attention to all these other things that are happening because it can impact the way the retail is looking at the market. Okay. Now, the question that a lot of people are going to then have is, okay, are we back? Is Micron back? Is AMD back? Is Nvidia back? Is SanDisk back? And unfortunately, guys, the answer is no. They're not back yet. They might be back, but they're not back yet. Let me explain. When you look at a Micron right now, although this has been a beautiful run for Micron, you have to take off the blinding goggles of excitement that you have on and look at it for what it is. Micron is clearly still in a downtrend. You have the high, the lower high, the lower low, the lower low, the lower low, right? Lower highs and lower lows. It's in a downtrend and it's stuck in this downtrend. And while we see Micron at least at least below this gray line right here, this downward sloping trend line, Micron can't go up. Micron cannot go above $1,000 while it's below this gray line. It's impossible. It's it's mathematically impossible. And anyone with eyes can see that it's impossible. And so although it feels good to see Micron going up right now, you need to understand there is still a lot that needs to happen before we're out of the woods here. It can be back. Micron can use this as fuel to start working itself up, but that is nowhere near confirmed yet. So for everyone who's telling you we're back, we're back. We're back. The gains are back. The AI bubble's back. It's not confirmed yet. That's just a guess. Confirmation looks like Micron breaking back above the trend. Getting above the trend. That starts to say, "Oh yeah, it's changing. We really are back." Or in AMD, for example, AMD needs to be able to break these m these macro zones of resistance. Look, there's a major zone of resistance for AMD at $486. There's another major zone of resistance for AMD sitting between 528 and 503. These two seller zones are going to serve as massive points of resistance, okay? And they're going to try to force AMD's price back down. And at any given point, AMD can do this. Boom. Go straight back down. So, no. Until AMD clears these zones and shows that the buyers are in control, AMD is not back. Until Nvidia can work itself back up and at minimum at a bare minimum get back above $200 above this golden zone, Nvidia is not back. Until Sandis can come up and break through this downward sloping trend line that it had, it is not back. I know this is not what you want to hear. You want me to be bullish. You want me to be screaming. You want me to tell you that the gains are coming. I'm not going to lie to you to just appeal to your emotions. That is the worst thing I could do to you as a creator. The best thing I can do is say, "Look, yeah, they might be back and we might be working back in a great direction, but we're not out of the woods yet." So stay composed. Dial up. Get your posture up. Lock in a little bit. Stop getting too naive to think that every single pump means that we're back. Cuz what did this one mean? What did this one mean? What did this one mean? Were we back here? Were we back here? Were we back here? No. So, no, we're not back yet. But this is a good sign. It's a good clue. It's a very, very good clue. And it feels damn good when I see my Microsoft Microsoft position up 15%. It feels damn good because it's validating to say, you know what, these trades and these bets that we're making right now, these trades and these bets that we're making right now could come to fruition and we could be right and we can make money off of this. Okay? So, it feels very good. But I don't want you all to get caught up in this idea that we're back yet because we're not. It's not confirmed yet. Give it time. Let's see how it goes forward. Does it last? Does it immediately get sell sold off? Does South Korea wake up and just sell off everything because they're in the positive? Because look what happened when they were positive. Look what happened when South Korea's composite was positive immediately reversed all of it. Same thing could happen to us. Don't get too far ahead of yourselves. Now is not the time in my opinion to start chasing these stocks and start trying to buy now that they're up 15 to 20%. You're playing this game backwards. You buy in the red, you sell in the green. It's the exact reason I closed the Sandis trade. I took a 42% gain and I just closed it. I just took it. Okay. So, I'll keep you updated. I've been doing live streams like crazy. We did a five hour live stream yesterday, a two-hour live stream the time before that, hour the day before, an hour day before. So, I'm gonna be live today going over the end of the market when Apple and Amazon release their earnings because guess what? If Amazon comes out and cuts and and doesn't increase their capex, you might see this only escalate crazier. You might see them really start to rally. So, what happens later will impact the AI trade for certain. and I'm going to be here with you for two, three hours going through all of it together. Okay? So, in the meantime, what I want you to do, I want you to subscribe to the channel and turn on your notifications so you don't miss it because there's a good chance that when this goes live, it doesn't send you notifications cuz I posted so many videos in the last 24 hours. So, I'll keep you updated as it plays out. There's a lot going on. You're not going to want to miss it. This is getting juicy, folks. And hey, I did actually want to tell you guys this platform that I trade on is called Liquid. Okay? This is the platform I trade on. I've been trading on them for a while now. If you also want to trade and have the ability to open up some little trades like this, you know, make a little 42% gain here, 9% gain there, 9% gain there, 16% gain there, you can use my link down below and they're going to give you 10% lower fees and some bonuses, which is really dang cool. Really dang cool. So, I'll leave a link down below. It's one of the absolute best trading platforms for stocks and I've made some decent money doing it. So, feel free check it out. Link's down below. And uh yeah, I'll see you all in a few hours. Stay dialed. See you folks.