Let's talk about the sharp rise and subsequent fall of SanDisk's stock after yesterday's earnings report. Since today is the weekend, I’ll get straight to the key points. 1. Storage market: Currently, SanDisk’s shipment prices are soaring, but shipment volumes are not increasing. The soaring profits are entirely driven by buyer premiums. 2. The exaggerated,超预期 profits last quarter have led to even more exaggerated profits in the next quarter, but during the conference call, they briefly mentioned that shipment volume for the next quarter might even decline month-over-month. 3. The most ideal scenario would be both shipment volume and shipment prices soaring together, but SanDisk has only achieved half of that. Management is somewhat restrained in expansion, which is actually a good thing. 4. Storage has always been a cyclical industry; the bust of a boom cycle usually results from companies’ reckless expansion. 5. That’s where the contradiction lies: market optimism can lead to industry overcapacity, ultimately resulting in disappointment and chaos. 6. Additionally, last night’s macroeconomic environment was unfavorable, with high inflation, the previously hawkish Federal Reserve chair, and a rare collapse in precious metals. Ultimately, until we see a large-scale retreat in AI demand and a reckless expansion in the storage industry, the benefits are still there.