So why are semiconductor stocks falling?
The bigger problem may be interest rates.
Elevated Treasury yields and expensive borrowing costs are reducing investors' appetite for risky assets, particularly high-growth technology stocks.
Even companies reporting record earnings can see their share prices decline when investors become less willing to pay premium valuations.
Is it time to buy the dip?
There is a bullish argument.
Micron is benefiting from strong demand for high-bandwidth memory and data-center chips, while limited supply continues to support memory prices.
TSMC and ASML's results suggest that AI infrastructure investment remains strong. If interest rates stabilize or decline, investors could return to semiconductor stocks.
But there are risks.
Competition from China's CXMT, future memory supply expansion, and a potential slowdown in AI spending could eventually pressure Micron's earnings.
High borrowing costs could also delay new data-center projects, weakening demand even if the long-term AI outlook remains positive.
The bottom line: Micron's 14.6% weekly decline may offer an opportunity for long-term investors who believe the AI and memory boom is far from over.
For now, the evidence points more toward pressure from interest rates and valuations than a collapse in semiconductor demand.
Disclosure: The author holds positions in other high-beta stocks that may be affected by similar market conditions. This article reflects the author's opinion and is not financial advice.