Agents add a customer that never stops buying. That won\u2019t end the cycles. But it puts a much firmer floor under demand.<\/p>\n\n\n\n
Memory is no secret anymore, of course. AI\u2019s appetite for chips has caused a worldwide shortage. In its latest fiscal year, Micron\u2019s sales jumped 256% to $133 billion. Its shares are up more than 230% this year alone.<\/p>\n\n\n\n
When a stock runs that far, the natural question is whether you\u2019ve missed it. That\u2019s where TradeSmith\u2019s tools come in.<\/p>\n\n\n\n
Our Health Indicators work like traffic lights. Green means a stock is in a healthy uptrend. Red means the trend has broken. Right now, Micron is in the Green Zone on both our short-term and long-term measures.<\/p>\n\n\n\n It also has a Quantum Score of 81.6, which combines how strong the business is with how much momentum the stock has, including signs that big institutions are buying.<\/p>\n\n\n\n Of the memory stocks we track, it scored highest. Any stock above 75 is a buy.<\/p>\n\n\n\n If memory is the theme everyone\u2019s noticed, networking is the one almost nobody has.<\/p>\n\n\n\n Here\u2019s why it matters. Agents talk more than they think. Every step an agent takes means sending a message \u2013 to an AI model, a database, a website, or another agent.<\/p>\n\n\n\n All that chatter travels through the switches and cables inside data centers. Think of them as the roads between the computers. Today\u2019s roads were built for people asking questions a few times a day. Agents are about to put billions of drivers on them, around the clock.<\/p>\n\n\n\n So data centers are tearing up the old roads and laying new ones that carry roughly twice as much traffic. It\u2019s not glamorous. But every agent, no matter who builds it, has to drive on these roads.<\/p>\n\n\n\n One company has become the leading builder of them: Arista Networks (ANET).<\/strong><\/p>\n\n\n\n It makes the high-speed switches that direct traffic inside the world\u2019s biggest data centers. In the second quarter, its sales grew 38% from a year earlier to more than $3 billion. More than 100 customers now use its AI networking equipment, up from a handful in 2024.<\/p>\n\n\n\n Arista is in the Green Zone on both Short-Term and Long-Term Health. Its Quantum Score is 97, the highest of the networking stocks we track.<\/p>\n\n\n\n And as long as they stay Green, the bullish trend is intact.<\/p>\n\n\n\n Both of these stocks are getting hit right now.<\/p>\n\n\n\n Micron is down about 27% from its high earlier this year. Arista has fallen about 10% in the past week.<\/p>\n\n\n\n They\u2019re not alone. Stocks tied to AI infrastructure have been selling off together, as investors worry about high valuations and whether the AI spending boom can keep up its pace.<\/p>\n\n\n\n We\u2019ve seen this before. In January 2025, Chinese AI lab DeepSeek claimed it could build powerful AI with a fraction of the usual hardware. AI infrastructure stocks plunged. Nvidia dipped 17% in a single day, wiping out nearly $600 billion in value, the biggest one-day loss for any company in history.<\/p>\n\n\n\n Six months later, Nvidia was at a new record high and had become the first company ever worth $4 trillion.<\/p>\n\n\n\n Micron and Arista have been through the same thing. Both have had sharp drops that looked like the end of the story, followed by new highs.<\/p>\n\n\n\n The scare passed. The demand didn\u2019t. That\u2019s the pattern with a decade-long theme. The long-term trend is up. But along the way, these stocks will have scary months. This is one of them.<\/p>\n\n\n\n So don\u2019t buy all at once. If you put your whole stake in today and the stock drops another 20% next month, then it may scare you out of a good long-term idea.<\/p>\n\n\n\n Instead, buy a small chunk now, then add another chunk at regular intervals… say, every month or two. If the stock keeps falling, your next chunk is cheaper. If it rises, the shares you already bought are worth more. Over time, the ups and downs average out.<\/p>\n\n\n\n That matters, because the biggest mistake investors make with a volatile stock isn\u2019t picking the wrong one. It\u2019s buying too much, too fast, right before a drop… and then selling in a panic.<\/p>\n\n\n\n It’s important to know what a normal drop looks like. Our Volatility Quotient, or VQ, measures how much a stock typically swings. Micron\u2019s VQ is 49%, meaning it could fall nearly halfway from its high and still behave normally. Arista\u2019s is 38%.<\/p>\n\n\n\n Neither is a stock for money you can\u2019t afford to see drop by a third.<\/p>\n\n\n\n Keep an eye on the Health Zones, too. As long as they stay Green, the long-term trend is intact. If they turn Red, that\u2019s your signal to step aside.<\/p>\n\n\n\n Of course, a country of agents needs more than storage and roads. It needs a way to keep its citizens safe and a way for them to pay each other.<\/p>\n\n\n\n All the best,<\/p>\n\n\n\n Keith Kaplan<\/p>\n\n\n\n CEO, TradeSmith<\/p>\n\n\n\n![\"\"\/](\"https:\/\/tradesmith.com\/wp-content\/uploads\/2026\/10\/Screenshot-2026-10-16-at-9.47.22-AM.png\")
<\/figure>\n\n\n\nTheme No. 2: Networking<\/h2>\n\n\n\n
![\"\"\/](\"https:\/\/tradesmith.com\/wp-content\/uploads\/2026\/10\/Screenshot-2026-10-16-at-9.47.34-AM.png\")
<\/figure>\n\n\n\nOne Thing to Know Before You Buy<\/h2>\n\n\n\n