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Samsung and SK Hynix fell in Seoul on a China memory threat, while Broadcom’s CEO compared AI investors to casino gamblers and JPMorgan whipsawed, adding pressure to the AI semiconductor narrative.
The article
Samsung, SK Hynix Fall In Seoul On China Memory Threat—Broadcom CEO Compares AI Investors To Casino Gamblers—JPM Whipsaws Investors Get Jittery Please click here for an enlarged chart of JPMorgan Chase & Co (NYSE:JPM). Note the following: This article is about the big picture, not an individual stock. The chart of JPM stock is being used to illustrate the point. JPM is the largest U.S. bank. The chart shows the momo crowd was buying JPM stock on hopium ahead of earnings. The chart shows when JPM reported earnings. The chart shows the big drop in JPM stock on the earnings report. Whisper numbers were running ahead of consensus numbers. The drop in JPM stock was due to JPM missing earnings. Here are the details: JPM reported Q3 adjusted EPS of $5.75 vs. $5.94 consensus. JPM reported revenues of $50.17B vs. $51.22B consensus. The chart shows a reversal in JPM stock. The reversal was due to investors focusing on net interest income (NII) guidance. Here are the details: JPM sees Q4 NII of $28.0B vs. $27.42B consensus. For FY27, JPM sees NII of $107B, approximately 10% growth, vs. 2026. The VUD indicator is the most sensitive measure of net supply and demand in real time. The orange represents net supply and the green represents net demand. VUD indicator on the chart is orange, indicating net supply of JPM stock. The first big drop in JPM and then the recovery illustrates how jittery investors are. As a full disclosure, JPM is in our portfolio, long from an average of $34.14. We have been writing for months about the future competitive threat China poses to the semiconductor memory industry. Yesterday morning we highlighted the new progress by a Chinese memory manufacturer to make denser memory with a new technology. In the U.S., smart money trimmed Micron Technology Inc (NASDAQ:MU) on the development, but the momo crowd, oblivious to the news, bought MU stock. At a time when the momo crowd in the U.S. has been oblivious, investors in South Korea were paying attention to the development in China. Kospi index fell intraday as much as 7.4% and closed down 5.46%. Two big memory manufacturers in South Korea are Samsung Electronics Co Ltd (OTC:SSNLF) and SK Hynix Inc – ADR (NASDAQ:SKHY). Samsung stock in South Korea fell 7.4%, and SK Hynix stock fell 10.1%. Prudent investors should pay close attention to what Broadcom Inc (NASDAQ:AVGO) CEO Hock Tan said at a conference in Singapore. Here are the details: Tan warned that many AI investors (the momo crowd) "have no clue what they are investing in" and have "very extreme expectations." Tan compared their behavior to gambling in a casino. Tan also questioned the return on investment from corporate AI spending, pointing out that many companies are experimenting with AI without generating meaningful productivity gains. He acknowledged that OpenAI and Anthropic are generating substantial revenues but cautioned that heavy spending on training makes their long term profitability uncertain. Tan sees capital, rather than chips or memory, becoming the biggest constraint on AI growth. In our analysis, coming from the CEO of one of the biggest beneficiaries of the AI boom, these comments deserve attention. Consumer Price Index (CPI) will be released tomorrow at 8:30am ET, followed by Producer Price Index (PPI) Thursday at 8:30am ET. Magnificent Seven Money Flows Most portfolios are now heavily concentrated in the Mag 7 stocks. For this reason, it is important to pay attention to early money flows in the Mag 7 stocks on a daily basis. In the early trade, money flows are positive in Apple Inc (NASDAQ:AAPL), Alphabet Inc Class C ((NASDAQ: GOOG), and Microsoft Corp ((NASDAQ: MSFT). In the early trade, money flows are neutral in Amazon.com, Inc. ((NASDAQ: AMZN). In the early trade, money flows are negative in Meta Platforms Inc ((NASDAQ: META), NVIDIA Corp ((NASDAQ: NVDA), and Tesla Inc ((NASDAQ: TSLA). In the early trade, money flows are mixed in SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust Series 1 ((NASDAQ: QQQ). Momo Crowd And Smart Money In Stocks Bitcoin Bitcoin (CRYPTO: BTC) is range bound. What To Do Now Consider continuing to hold good, very long term, existing positions and add tactical positions based on signals. The Arora Report is known for its accurate calls. Most recently, we correctly called the rally from recent stock market lows and the 2026 semiconductor decline before a 25% drop in the Semiconductor ETF (SMH). In gold, we bought at an average price near $1,105, close to cycle lows, and took partial profits near $5,400, close to cycle highs. Please click here to get our free forever Generate Wealth Newsletter. Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.