Citrini Analyst Predicts Short-Term Bearish Storage, Bullish Optical Interconnects

Huo Xing Cai Jing reports that on August 8, Citrini analyst Jukan published a note stating that the market is likely to shift in the short term toward a "bearish stance on memory, bullish on optical interconnect." Several hedge funds have already begun implementing this strategy. The three key reasons are: Korean leveraged ETFs have largely become ineffective, with limited partners collectively redeeming shares, creating additional selling pressure; NVIDIA is reducing HBM configurations in Rubin Ultra and instead adopting optical interconnects to link multiple racks—this maintains cluster-level advantages even if individual rack performance does not improve, and this logic holds regardless of whether HBM reduction stems from supply or demand constraints; the market has reached a consensus that memory prices will peak within the next two quarters. Jukan explicitly stated that he remains bullish on memory in the medium to long term, but is slightly bearish in the short term, and currently holds no memory positions.