AMD, SanDisk, and Infineon: Significant Profit-Taking or a Pause in the Bull Market?
The chip bull market is undergoing a noticeable correction! A recent industry study by the consulting firm McKinsey underscores the sector’s fundamental strength and forecasts that the unstoppable trend toward global digitalization will make the semiconductor market a trillion-dollar business by the end of the decade. Driven by this long-term euphoria, coupled with acute supply bottlenecks and average price increases of 40%, the sector has experienced a spectacular boom over the past three months. But the pendulum is now swinging dramatically back the other way. In light of new trade conflicts between the US, the EU, and China, as well as early signs of a recession, major institutional investors are taking profits on a large scale and sending highly valued tech darlings into a brutal sell-off that has wiped out up to half of their gains in just two weeks.
US processor manufacturer Advanced Micro Devices (AMD) is coming under immense selling pressure following an unprecedented rally amid the AI boom and has already lost a quarter of its market value ahead of its upcoming quarterly earnings report on August 4. The share price slipped from its recent record highs of USD 585, which at times far exceeded LSEG’s ambitious price target of USD 545, to USD 445 in yesterday’s trading. The current 2026 P/E ratio of 75 reflects extremely ambitious growth expectations in the server business, so the market is unlikely to forgive any margin weakness ahead of the upcoming earnings report.
Storage specialist SanDisk is currently experiencing a veritable share price plunge after the stock rose eightfold in just seven months. Half of that gain was wiped out in a single slide to USD 1,175. Although looming overcapacity among major cloud providers is unsettling traders, according to LSEG data, 16 out of 24 analysts are still sticking to their “Buy” recommendation with an average price target of USD 2,095. The truth will be revealed on August 5.
German industry leader Infineon is also feeling the shift in the broader market climate, as the stock, after a spectacular doubling at its peak, has now given back around 40% of its gains. The main factors holding it back are the noticeable weakness in sales in the European electric vehicle market and a significant reduction in inventory among industrial end customers. Nevertheless, at around EUR 57, the stock remains a comfortable 50% above its long-term average and, thanks to the expected jump in earnings to EUR 2.75 next year, is looking at a moderate 2027 P/E ratio of just 21. Fresh figures are also due on August 5. Very exciting!
Gold: Central Banks Are Banking on the Value of the Precious Metal
From Correction to Stability! The continuity of the gold market is particularly evident in the behaviour of central banks. For monetary authorities, gold is not a theoretical “safe haven” but a debt-free asset that strengthens the credibility of their balance sheets and serves as a monetary anchor in a credit-driven financial system. Over decades, the precious metal has, on average, generated a return above the global inflation rate; however, what is crucial is that its performance is closely linked to real economic output and thus reflects the long-term expansion cycle of the global economy.
In recent years, central banks have undergone a clear shift in strategy: instead of reducing their gold holdings, they are acting as structural net buyers. In 2025, official purchases totaled around 863 metric tons according to the WGC—a slight decline compared to record years, but a significant increase compared to earlier decades. Poland has emerged as a new gold hub in Europe, with purchases exceeding 100 metric tons, while emerging markets such as Kazakhstan and Azerbaijan are expanding their reserves to counter their exposure to the dollar and the euro. At the same time, Russia, China, India, and Turkey are boosting their holdings for geopolitical reasons, as gold is intended to reduce dependence on Western reserve currencies and mitigate the risks of sanctions.
From a regulatory perspective, gold is doubly attractive to central banks. It meets the criteria for a High-Quality Liquid Asset (HQLA) under Basel III, features high daily trading volumes and tight spreads, and is on par with government bonds in terms of liquidity—but without issuer or default risk. The sustainability of the gold market rests on a broadly diversified demand structure comprising the jewelry sector, industry, central banks, and private investors. A classic long-term investment!
Lahontan Gold: From a Historic Gold Camp to a Modern Production Story
While many exploration companies are still reliant on identifying initial resources, Lahontan Gold already has a historic production base with its Santa Fe project in Nevada. The former open-pit mine produced approximately 359,000 ounces of gold and more than 700,000 ounces of silver between 1988 and 1995, offering a decisive brownfield advantage due to the availability of historical data, infrastructure, water rights, and technical expertise. Especially in an environment of rising construction and development costs, this advantage is becoming increasingly important, as every existing project component reduces capital requirements, permitting risks, and time commitments.
The situation in Nevada could hardly be more attractive, as the state—with more than 225 million ounces of gold produced—ranks among the world’s most significant mining regions and offers a stable regulatory environment. Santa Fe currently holds a NI 43-101-compliant resource of approximately 1.9 million ounces of gold equivalent, with extensive drilling programs and numerous additional target areas opening up significant growth potential. The key valuation driver here is the gold price, as even without additional ounces, the economic value of an existing deposit increases significantly if the metal price rises sustainably. The upcoming resource update and a revised PEA could significantly alter the project’s key metrics, as earlier models were based on substantially lower gold price assumptions. Based on internal calculations, the after-tax project value could rise to approximately USD 472 million at a gold price of around USD 4,000 per ounce, achieving an internal rate of return of about 66.6%.
The latest drill results further confirm that Santa Fe has even more geological potential than previously assumed. Particularly impressive is the most recent drill hole, CAL26-03C, in the Calvada Central area, which was originally planned for geotechnical investigations as part of the mining permit process but intersected strong gold mineralization. The 30.8 m drill interval averaging 0.93 g/t gold equivalent (AuEq), including a high-grade 10.7 m interval at 2.18 g/t AuEq, underscores the quality of the central resource zone and bolsters confidence in the planned open-pit development. Lahontan had previously provided important indications that the mineralization extends beyond the previous model boundaries with a 90.8 m interval at 0.44 g/t AuEq in Calvada and the discovery of the new Slab West zone.
IIF host Lyndsay Malchuk delves into the facts in Nevada and interviews CEO and founder Kimberly Ann.
In addition to expanding the resource, Lahontan is consistently working on the technical preparations for future mine operations. An extensive geotechnical program involving over 2,500 m of drilling provided key insights into slope stability, groundwater, and waste rock, with only minimal water-related issues identified. Environmental and permitting work is proceeding in parallel, making the planned start of the permitting process and a potential start of construction in 2027 appear increasingly realistic. The West Santa Fe satellite project offers further potential, as metallurgical studies confirmed gold recovery rates of approximately 81% and silver recovery rates of about 60% using cyanide leaching, thereby supporting the project’s suitability for cost-effective heap-leach processing.
Major gold producers worldwide face the challenge of replacing their reserves, and high-quality brownfield projects in secure regions such as Nevada are thus gaining strategic importance. While a potential acquisition by larger market players remains speculative, experience shows that projects with existing infrastructure, manageable development risk, and high leverage to the gold price are coming into sharper focus. However, with a very low market capitalization of just CAD 155 million, Lahontan must already be on the radar of larger market players. Exciting!
The stock markets are on a roller coaster ride! While the once-booming NASDAQ is now consolidating amid weakness in the semiconductor sector, the DAX is hitting new highs. Gold is back in the spotlight following a correction. Investors should take a closer look at the near-term producer Lahontan Gold.
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