What Happened?
A number of stocks fell in the morning session after concerns regarding lofty artificial intelligence valuations triggered a pullback in the technology sector.
Nvidia slid 3% ahead of its earnings report, dragging down fellow "Magnificent Seven" peers despite a major partnership announcement with Anthropic, as investors increasingly question the durability of the AI rally. Market sentiment was further dampened by Bitcoin dropping below $90,000, signaling reduced risk appetite, and growing anxiety that the Federal Reserve may pause rate cuts in December, with the implied probability of a cut falling to roughly 50%.
Adding to the weakness, Home Depot shares declined following an earnings miss and a cut to its full-year outlook. This combination of continued de-risking and valuation skepticism put the S&P 500 on pace for its fourth consecutive daily decline.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Processors and Graphics Chips company AMD (NASDAQ: AMD) fell 4.9%. Is now the time to buy AMD? Access our full analysis report here, it’s free for active Edge members.
- Processors and Graphics Chips company Intel (NASDAQ: INTC) fell 1.7%. Is now the time to buy Intel? Access our full analysis report here, it’s free for active Edge members.
- Analog Semiconductors company Monolithic Power Systems (NASDAQ: MPWR) fell 4.2%. Is now the time to buy Monolithic Power Systems? Access our full analysis report here, it’s free for active Edge members.
- Memory Semiconductors company Micron (NASDAQ: MU) fell 5.9%. Is now the time to buy Micron? Access our full analysis report here, it’s free for active Edge members.
- Semiconductor Manufacturing company Amkor (NASDAQ: AMKR) fell 2%. Is now the time to buy Amkor? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Micron (MU)
Micron’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 1.2% on the news that Rosenblatt raised its price target for the stock to $300, contributing to the positive momentum.
The stock reached an all-time high of $257.45. Rosenblatt cited limited DRAM supply growth through 2026 and increasing demand as key factors for its positive outlook. This surge in demand was linked to the growth of generative artificial intelligence (AI), which has increased the need for Micron's high-capacity data storage solutions. The company's strong performance and the positive business momentum reflected growing investor confidence in its future prospects.
Micron is up 165% since the beginning of the year, and at $231.70 per share, it is trading close to its 52-week high of $253.30 from November 2025. Investors who bought $1,000 worth of Micron’s shares 5 years ago would now be looking at an investment worth $3,814.
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