A global technology sell-off is dragging the Nasdaq lower, with semiconductor names bearing the brunt of the move. Micron (MU) and Nvidia (NVDA) are both down on the session, alongside Sandisk, in what appears to be a broad risk-off rotation rather than company-specific news.

The sell-off comes despite both MU and NVDA reporting exceptionally strong fundamentals. Nvidia posted $215.9B in revenue for FY2026 — up 65.5% year-over-year — with a 71.1% gross margin and $4.90 diluted EPS, figures that reflect unmatched AI infrastructure demand. Micron similarly reported $37.4B in revenue, up 48.9% YoY, with a 39.8% gross margin and $7.59 diluted EPS, signaling robust HBM and DRAM demand.

The tension here is classic: are these forced sellers and macro-driven outflows creating a dip in structurally sound businesses, or is the market sniffing out a cyclical peak — particularly in AI capex and memory — that the income statements haven't yet reflected? Semis are a notoriously cyclical group, and multiple expansion during the AI boom means both stocks carry elevated valuations relative to historical norms even after today's move.

For Nvidia, the bull case is the clearest in the sector — its gross margins and revenue trajectory are unprecedented for a chip company at scale. For Micron, the read is murkier: memory is historically the most cyclical sub-segment, and any softening in hyperscaler HBM orders would hit MU disproportionately. The key things to watch are whether the sell-off broadens into a multi-day distribution pattern and whether macro catalysts (rate expectations, China tech restrictions) are driving the rotation.