A rotation out of AI-exposed names is hitting the three largest pillars of the trade simultaneously: Nvidia (semis/infra), Micron (memory/HBM), and Alphabet (cloud/search AI). All three reported strong FY numbers — NVDA at $215.9B revenue (+65.5% YoY) with 71% gross margins, MU at $37.4B (+48.9% YoY), and GOOGL at $402.8B (+15.1% YoY) with 32.8% net margins — yet the selloff suggests the market is repricing near-term AI capex expectations rather than reacting to fundamental deterioration.

The key question is whether this is a valuation reset after a crowded momentum trade, or the start of a longer derating as AI infrastructure spending cycles. Watch for any updates to hyperscaler capex guidance (GOOGL is a direct read-through), NVDA's next print for data center demand signals, and whether MU's HBM order book holds — those will determine if the dip is buyable or the beginning of a structural unwind.