Stephanie Link, Chief Investment Strategist at Hightower, appeared on CNBC’s Morning Call Sheet with a contrarian call. The S&P 500 sits 1.5% off all-time highs, the Nasdaq is down 5%, and the small-cap Russell 2000 is down 15%, while the Dow just tagged a fresh record. Money is fleeing mega-cap tech for healthcare, financials, cybersecurity, and consumer staples, and staples are trading at record highs. Link sees this as the exact moment to lean into the names getting flushed.
Her line was direct. “I want to go back to some of these stocks that have been beaten down… Micron, SanDisk, Broadcom and Nvidia are giving us opportunities to get in… it’s time to get into these names.” She narrowed the tactical trade further, saying “from a technical point of view, from a fundamental point of view, I look at Micron and SanDisk… now may be the time to dip their toe into the water.”
The Selloff and the Rotation
The rotation was triggered by President Trump’s comments that the ceasefire with Iran had been canceled, with oil moving higher and investors trimming crowded winners. The Nasdaq 100 is still up 16.8% year-to-date. The Russell 2000, by contrast, is up 18.7% YTD, so the rotation has legs.
Beaten-down mega-cap tech is where the flushing is happening, and that is where Link is shopping.
Link’s Buy-the-Dip Case on Micron
Micron Technology (NASDAQ:MU | MU Price Prediction) is the cleanest expression of Link’s thesis. The company reported $41.456 billion in fiscal Q3 revenue, a 17.60% beat, with non-GAAP EPS of $25.11 topping consensus by 23.79%, its 7th consecutive beat. Gross margin ripped to 84.6% from 37.7% a year ago. CEO Sanjay Mehrotra told investors that “Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era.” Q4 guidance calls for $50.0 billion in revenue and $31.00 in EPS.
The stock got hit anyway. Shares are down 16% over the past month and down over 6.6% so far this morning. Forward P/E now sits at 6x, with the Street’s average price target at $1,486 against a current print of $917.
Link’s Buy-the-Dip Case on SanDisk
SanDisk (NASDAQ:SNDK) is the more volatile side of the same trade. Q3 FY2026 revenue came in at $5.95 billion, up 251% year over year, with EPS of $23.41 beating by 59.67%. Datacenter revenue jumped 645% YoY. CEO David Goeckeler framed it as “a fundamental inflection point for Sandisk”, with five multi-year customer agreements now signed under the New Business Model.
The stock got clubbed, down 17% in the past month. Barchart flagged Mizuho, Cantor Fitzgerald, BofA, and Citi all raising price targets in late June, with one bullish call pointing to $3,250 within 12 months. Forward P/E is 27x; the Wall Street target sits at $1,930.5 versus a spot price near $1,688.89.
The Mega-Cap Haven Counter
Kevin Gordon of Charles Schwab pushed back on the segment. His argument is that if oil keeps grinding higher, the resulting cyclical stress historically drives investors back into mega-cap tech as a haven. That flow would favor NVIDIA (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) more than the memory names Link is fishing in. NVIDIA posted $81.62 billion in fiscal Q1 revenue, with data center revenue up 92% YoY, and $119 billion in supply commitments locked in. Broadcom’s AI semiconductor revenue hit $10.8 billion in fiscal Q2, and CEO Hock Tan guided Q3 AI revenue to $16 billion, with a stated goal of exceeding $100 billion in AI sales by 2027. Both stocks have sold off recently.
Link’s read leans on valuation math that is hard to argue with after Micron’s fiscal Q3 report. Gordon’s read leans on flows that have historically shown up when oil bites. The prediction markets are moderately bullish on MU in the near term and see meaningful upside into month-end, which lines up with Link’s timing more than with Gordon’s. If you were waiting for these names to give you a real entry point after the run they had, the setup just gave you one.
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