US Stock Market Today: S&P 500, Nasdaq Plunge Up To 1% On Tech Selloff; Micron Erases AI Gains
The S&P 500 and Nasdaq dropped up to 1% in a broad tech selloff, with Micron erasing a significant portion of its AI-driven gains. MU's FY2025 revenues hit $37.4B (+49% YoY) with solid 39.8% gross margins, but broader risk-off sentiment is pressuring the entire AI memory trade.
What happened
The S&P 500 and Nasdaq dropped up to 1% in a broad tech selloff, with Micron erasing a significant portion of its AI-driven gains.
The read · Jun 26
MU's 49% revenue growth and robust margins collide with a broad tech selloff — the question is whether this is a buyable dip in a still-intact AI memory upcycle or the start of a more durable de-rating.
Wrong if
A broader HBM demand slowdown signaled by hyperscalers (Meta, Google, Microsoft) in upcoming earnings, or a DRAM spot price rollover, would invalidate the bull case and extend the drawdown materially beyond the stop.
CoverageSource: NDTV Profit · Published here FRI, JUN 26 · 9:37 AM ET · the only report in this recordHow this is decided →
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The story1 min read
US equities sold off broadly on Tuesday, with the S&P 500 and Nasdaq each falling close to 1%, led by weakness in the technology sector. Micron Technology (MU) was a notable decliner, giving back a chunk of the AI-driven rally it had accumulated over recent months. The macro backdrop — rate uncertainty and stretched AI valuations — appeared to be the primary driver rather than any company-specific negative.
Micron's own fundamental picture remains strong: FY2025 revenues reached $37.4B, up nearly 49% year-over-year, with gross margins at 39.8% and diluted EPS of $7.59. The HBM (High Bandwidth Memory) cycle underpinning AI infrastructure build-outs is still intact, and MU remains one of the most direct ways to play that theme in public markets.
The tension here is whether this selloff is a healthy reset in a structurally strong AI memory upcycle, or the beginning of a more meaningful de-rating as the market questions the duration and magnitude of AI capex. MU is still trading at a multiple that prices in continued HBM demand growth, so any signal of softening from hyperscalers could accelerate the pullback.
What to watch: hyperscaler capex commentary in upcoming earnings calls, DRAM spot price trends, and whether MU holds key technical support levels. A bounce from here would reinforce the bull case that the AI memory cycle has legs; a break lower would suggest the market is pricing in a sharper-than-expected inventory correction.
The read, in fullWhy it matters
MU's FY2025 fundamentals are genuinely strong — $37.4B in revenue (+49% YoY), 39.8% gross margins, and $7.59 EPS — suggesting the AI memory cycle is still delivering. The selloff appears macro/sentiment-driven rather than fundamental, which historically creates mean-reversion opportunities in high-growth semis with intact demand. However, enrichment data lacks consensus/PT detail, limiting conviction on the setup.
The arc● Open · no developments yet
· Published
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JUN 26 · first close after publicationSEP 4
Price context does not establish that the story caused the move.
▲ The case it holds
MU's 49% YoY revenue growth and 39.8% gross margins in FY2025 reflect genuine HBM demand strength, and a sentiment-driven selloff without a fundamental catalyst historically resolves to the upside for structurally growing semis.
▼ The case it breaks
MU's stock had already priced in a strong AI memory cycle, so with the multiple stretched and the broader market in risk-off mode, the 'AI gains erasure' could reflect early-cycle demand-peak concerns that fundamentals alone cannot dismiss.
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