Micron proves AI demand is booming while tech sells off — buy the dip in semis
Micron just reported massive demand for AI memory chips, but the broader tech sector is selling off anyway. Meanwhile, smaller company stocks are quietly having their best year in decades, suggesting investors are rotating money away from expensive big tech into cheaper areas of the market.
Idea
Despite Micron confirming that AI demand is stronger than ever, large-cap tech stocks are tumbling. This divergence — great fundamentals but falling prices — signals that investors are fatigued by big tech valuations and are looking elsewhere. With small caps simultaneously experiencing their strongest run since 1991, this creates a textbook rotation setup. When mega-cap tech stumbles on good news while small caps hold their ground, money usually flows downstream to catch the next wave of growth.