Serenity: Investors are indiscriminately selling AI-related assets; some memory stocks now trade at a trailing P/E ratio as low as 1.6x.

Serenity (@aleabitoreddit), an investor on X, posted: “Deleveraging across the market has become extremely pronounced. AI-related stocks are facing indiscriminate selling—some companies’ share prices have even plunged back to levels seen before major orders were secured and earnings expectations materialized. Take ESMT, a memory chipmaker, as an example: its market cap stands at roughly $2 billion; in Q3 2024, it reported gross profit of $526.2 million and net income of $330 million, with total equity reaching $937 million (including ~$740 million in net cash). Annualizing that quarter’s results yields a P/E ratio of just ~1.6x. While market concerns persist around peak industry cycles, unsustainable profitability, and weak competitive moats, accelerating retirement of DDR2 and DDR3 production lines is steadily tightening supply—and ESMT…”