After a sharp rise in stock prices and attention to corporate executive losses, the market discussion of U.S. light technology has returned to the core issue of whether the high valuations of this storage chip company will continue to be sustained by the performance growth that AI brings.

According to external media reports, CNBC moderator Jim Cramer said in Mad Money, 20 August, that American light technology was still “seriously underestimated”. In his view, the chip manufacturer was still attractive in terms of the expected valuation, although the stock price had risen significantly.

Wall Street continues to watch more.

The view is not based solely on television commentators. The Bank of the United States has recently included U.S. Light on the “Best Investment Ideas” list and increased the target price to $1550, indicating that the agency remains positive about its follow-up performance.

However, market concerns also fall on insider transactions. It was reported that executives such as the Chief Executive Officer of Migwang sold part of the shares in July. Since the company ' s share price had accumulated several times before, such a reduction had triggered a discussion of whether the valuation was overheated.

We've already made arrangements.

It was reported that these transactions were carried out under the Rule 10b5-1 plan, which was established on 30 January. This means that the related sale was not a temporary decision after the latest round of escalation, but an automatic transaction that had been arranged several months earlier.

In the United States stock market, senior managers are not unusual to reduce after a sharp rise in equity prices, especially under pre-set trading plans. The market is more concerned than the slowdown itself with whether the current rate of increase in profits in American light will continue to match the rapidly rising valuation levels.

AI Data centre pulls performance

The latest financial report of the United States of America is the main basis of optimism. The company received $41.466 billion for the third quarter, compared with $9.3 billion for the same period of the previous year; the adjusted earnings per share amounted to $25.11, with the non-GAAP Maori ratio rising to 84.9 per cent.

Management expects that the fourth financial quarter will receive approximately $50 billion, with adjusted gains of approximately $31 per share, driven mainly by the needs of the AI data centre repository.

The company also disclosed that it had signed 16 strategic customer agreements covering about 20 per cent of DRAM deliveries and had received approximately $22 billion in advances from clients. These data increase market visibility for future needs and explain the willingness of investors to give them valuations higher than in previous storage cycles.

On the whole, the case of beauty light reflects that the AI heat is continuing to push up the semiconductor plate. However, the sustainability of subsequent performance after a synchronized upswing in equity prices and valuations remains key to the market ' s judgement of the scope for their upswing.