In South Korea, KOSPI’s nearly 11% drop the day before created panic for downstream AI suppliers. The Korean index has a heavy exposure to SK Hynix (SKHY) and Samsung (SSNLF). Those are two of the three biggest memory suppliers. Micron (MU) is on that list.
Coherent (COHR) dropped by 10.3% to close at $243.33. The price sent the stock back to levels not seen since April. Earlier in July, AXT (AXTI) subsidiary AXT-Tongmei entered into a three-year deal with Coherent. They will develop and supply indium phosphate water substrates. Those are semiconductor base materials for making high-speed optical circuits and lasers.
COHR stock trades at a forward P/E of 29 times, compared to a 116x P/E.
Corning (GLW) dropped by 12.1% to close at $126.01. The stock broke below its 200-day simple moving average. This is a price not seen since March.
Corning is an optical network supplier. It posted revenue of $4.74 billion in Q2 (+22.8%). GLW stock trades at too high a P/E multiple. That made the stock vulnerable to the sell-off on Tuesday.
Sandisk (SNDK) continued its frightening drop, losing 14.25% to close at $1,096.10. The double-digit percentage drop is the third straight decline. It lost 10.8% and 11.2% on July 24 and 27th, respectively.
