Bearish on SanDisk/Western Digital on AI policy fears

At the open, optical modules may hit the daily limit down. The Nasdaq fell 6.5% intraday, the Philadelphia Semiconductor Index dropped 12%, Micron fell 10.50%, and SanDisk fell 14.39%. #The reason is a Democratic bill. Yes, just a single bill, nothing else. And this bill, the Senate version S.5493, was introduced on September 23. The House version H.R.10538 was introduced on September 24. As of today, both are still stuck at Introduced. The Democrats have taken control of both the Senate and the House. The proposal remains the same, but those pushing it now hold the power. The bill aims to pause all advanced AI research and development until federal regulators are established. Penalties: Mandatory dissolution of companies, up to 20 years imprisonment for individuals. 20 years, which carries the same sentencing as illegally developing nuclear weapons.