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2026-10-24 02:55 • The Motley Fool Mixed Axe Cap view: Selective

Memory chip stocks have declined roughly one-third from their July peak amid investor concerns about cyclical oversupply and rising debt yields. However, Nvidia CEO Jensen Huang argues the shortage won't ease until after 2029, and memory stocks trade at attractive valuations with extreme profit margins. The article suggests memory stocks may be undervalued given long-term AI demand from robotics and autonomous vehicles.

Axe note: While Nvidia’s CEO expects memory shortages to last years, current market pain reflects real cyclical risks.

2026-10-24 02:15 • The Motley Fool Mixed Axe Cap view: Selective

SpaceX exceeded Q3 expectations with $14.58 billion in revenue and $0.35 diluted EPS. Starlink showed strong growth with improved ARPU at $69/month, while the AI/Super Intelligence segment surged to $7.6 billion in revenue. Starship development progressed with planned November flight tests. However, accelerating capex ($35-40 billion expected in Q4) raises questions about future shareholder returns.

Axe note: SpaceX’s booming Starlink and AI segments drive massive sales growth but expensive capex may dampen returns.

2026-10-24 01:07 • The Motley Fool Positive Axe Cap view: Selective

Western Digital reported strong fiscal Q1 2027 results with 55% revenue growth to $4.38 billion, 161% adjusted EPS growth, and a 17% dividend increase. Despite beating guidance and raising fiscal Q2 outlook to 66-72% growth, the stock has fallen 53% from its June peak due to investor concerns about hard drive pricing sustainability. The analyst suggests the valuation at 15x forward earnings reflects much of the pricing risk and recommends a small position, with the main risk being earlier-than-expected pricing declines.

Axe note: Despite a hefty 53% slide since June, Western Digital’s recent report offers a compelling, if risky, entry point.