MU, SNDK, SKHY Stocks Bounce After Thursday’s Markdown, But Strategists Split: ‘Great Buying Opportunity’ Versus ‘The Kospi Has Peaked’

• Verrone stated that defensive sectors leading the market could signal further near-term pressure on semiconductor stocks.
• NFJ Investment Group’s John Mowrey said the Korean market may have peaked.
• Mowrey pointed to weakening commodity prices and the possibility of disinflation in 2027.

Memory stocks Micron Technology (MU), SanDisk (SNDK) and SK Hynix (SKHY) rebounded in early trading Friday after a sharp sell-off a day earlier, but strategists remain divided over whether the pullback presents a buying opportunity or signals a broader market peak.

MU stock was up over 1%, SNDK stock gained nearly 2%, while SKHY shares jumped over 4%. On Stocktwits, retail sentiment around Micron remained in ‘bearish’ territory over the past day, while sentiment around SanDisk and SK Hynix trended in the ‘bullish’ zone.

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The rebound comes after the Philadelphia Semiconductor Index (SOX) fell 6.7% in the previous session, its worst day since June 23, and Micron lost about 6%.

In an interview with CNBC, Chris Verrone, chief market strategist at Strategas, said the damage looks technical, not fundamental, and argued that further weakness would be short-lived. Meanwhile, John Mowrey, chief investment officer at NFJ Investment Group, took the opposite view on memory and on the Korean market that depends on it.

Strategist Sees Semiconductor Sell-Off Creating Buying Opportunity

According to Verrone, the recent weakness in semiconductor stocks does not reflect a comparable deterioration in the underlying business outlook.

“Fundamentally, we’re seeing great strength, but technically, there’s some pressure on these semiconductors, and if the pressure continues, it could take the market on a little leg lower, which I think will be quick and a great buying opportunity,” he said.

The pullback follows a period when technology stocks led the broader market higher. Verrone said the speed of the reversal had caught investors’ attention. The SOX is now more than 26% below its June 22 record.

Verrone also pointed to a shift in market leadership. Defensive sectors have strengthened even as technology stocks have weakened, with consumer staples and health care hitting records Thursday while the Nasdaq Composite fell 2.6%. “Right now, defenses are leading. That’s got my spidey sense up,” he said. “Like this is not the leadership we want to see, and we have to watch semiconductors.” 

According to Verrone, continued semiconductor weakness could drag the broader market lower in the near term, though he expects any further decline to be relatively short-lived.

Market Maybe Overlooking Disinflation Risk

Mowrey offered a more cautious assessment, pointing to weakness across several commodity markets and the possibility that inflation could ease more sharply in 2027.

“We’re of the view that the Kospi is at its peak here,” he said. The strategist linked his outlook to the behavior of memory prices and other commodities. He noted that gold and silver were breaking down, while copper was also under pressure.

According to Mowrey, interest rates have likely peaked for the year and sees a 30% to 40% chance of a disinflationary environment emerging in 2027. “I think there’s some potential for that,” Mowrey said, adding that the market appeared to be “pricing it at a 0% chance.”

Semiconductor Stock Rebound Friday Pre-Market

The Direxion Daily Semiconductor Bull 3X Shares (SOXL) was among the top trending tickers on Stocktwits at the time of writing. SOXL stock gained as much as 1.6% in pre-market trade. The iShares Semiconductor ETF (SOXX) and the VanEck Semiconductor ETF (SMH) each edged around 0.5% higher. The Roundhill Memory ETF (DRAM), which is more focused on memory names within the semiconductor trade, jumped over 2.5%. 

On Stocktwits, retail sentiment around SOXL and SOXX trended in ‘extremely bullish’ territory over the past day, while sentiment around SMH trended in the ‘bullish’ zone. Sentiment around DRAM remained in ‘bearish’ territory.

Read also: SOXL Sinks To 6-Month Low As Nasdaq Slides Amid Oil Surge: Trump Blames Iran, But Wells Fargo Says Huang’s Comments Spooked Markets

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