Trump Bans Chinese Humanoid Robots; Micron Competitor SK Hynix Creates Volatility; Fed Decision Looms
Fed Decision Ahead Please click here for an enlarged chart of SK Hynix Inc — ADR (NASDAQ: SKHY ). Note the following: This article is about the big picture, not an individual stock. The chart of SKHY stock is being used to illustrate the point. South Korea’s SK Hynix is one of the world’s three largest memory makers. It competes with Micron (MU) and recently listed its stock in the U.S. The chart is an hourly chart to give you a better picture. The chart shows that after the recent U.S. IPO, SKHY traded as high as $194.80, and as the chart shows, has now pulled back to $128.45 as of this writing in the premarket. This range gives you an idea of the extreme volatility since the U.S. listing. The chart shows SKHY has traded as low as $113.70 and as high as $132.10 in the early trade this morning. This range gives you an idea of the extreme volatility today. SK Hynix reported outst...
Fed Decision Ahead Please click here for an enlarged chart of SK Hynix Inc — ADR (NASDAQ: SKHY ).
Note the following: This article is about the big picture, not an individual stock.
The chart of SKHY stock is being used to illustrate the point.
South Korea’s SK Hynix is one of the world’s three largest memory makers.
It competes with Micron (MU) and recently listed its stock in the U.S.
The chart is an hourly chart to give you a better picture.
The chart shows that after the recent U.S.
IPO, SKHY traded as high as $194.80, and as the chart shows, has now pulled back to $128.45 as of this writing in the premarket.
This range gives you an idea of the extreme volatility since the U.S. listing.
The chart shows SKHY has traded as low as $113.70 and as high as $132.10 in the early trade this morning.
This range gives you an idea of the extreme volatility today.
SK Hynix reported outstanding earnings but still less than consensus and significantly less than whisper numbers.
Here are the details: SK Hynix reported operating income of 61T Korean won vs.
64T won consensus.
The reported operating income is up 257% year-over-year.
SK Hynix reported revenue of 79T won vs.
84T won consensus.
In South Korea, SK Hynix shares at one point were down about 20% but recovered to close down 9.6%.
Adding to the negative sentiment is that momo crowd darling Vertiv Holdings Co (NYSE: VRT ) reported revenue of $3.27B vs. $3.38B consensus.
Vertiv is a leader in providing cooling to AI datacenters.
On the positive side, disk drive maker Seagate Technology Holdings PLC (NASDAQ: STX ) reported earnings better than consensus and whisper numbers.
Here are the details: Seagate reported earnings $5.71 vs. $5.10 consensus.
Seagate reported revenue of $3.63B vs. $3.5B consensus.
Seagate guides fiscal Q1 EPS of $7.10 — $7.50 vs. $5.85 consensus.
Seagate guides Q1 revenue of $4.0B — $4.2B vs. $3.78B consensus.
The Trump administration has taken a major step to protect U.S. production of humanoid robots and power inverters.
The import of Chinese humanoid robots and connective inverters is being banned.
Tesla Inc (NASDAQ: TSLA ) is a beneficiary as it is a major manufacturer of humanoid robots.
On the inverter side, Enphase Energy Inc (NASDAQ: ENPH ) and Solaredge Technologies Inc (NASDAQ: SEDG ) are beneficiaries.
Speculation will build if the U.S. will also ban Chinese large language models that compete with OpenAI and Anthropic.
There is additional volatility in the stock market ahead of the Fed’s rate decision that will be announced at 2pm ET.
The momo crowd’s pattern is to buy ahead of the Fed decision on hopium.
This morning, the momo crowd’s pattern is punctuated by earnings from SK Hynix, Seagate, and fuel cell company Bloom Energy Corp (NYSE: BE ).
On the negative side, in a surprise, Iran attacked U.S. forces in Jordan.
Iran linked Iraqi groups attacked Saudi oil installations.
Oil is rising as a result of these attacks.