This figure has doubled since the start of 2026. <\/p>\n
The figure aligns with many well-known tech stocks dropping noticeably from their mid-May highs or flat-out lagging in 2026 (see the “Magnificent Seven<\/a>“). <\/p>\n Tech stocks have retreated from their highs as investors take a more measured view on valuations after an AI-fueled rally. Enthusiasm around artificial intelligence remains strong. But Wall Street is increasingly focused on whether massive spending on data centers, chips, and infrastructure will translate into meaningful earnings growth over the next several years. <\/p>\n Fears of higher interest rates have also put pressure on richly valued growth stocks as future profits become less valuable when borrowing costs remain elevated. <\/p>\n At the same time, some investors have rotated into sectors that have lagged the market. They have also poured into AI-derivative trades such as Micron (MU<\/a>) and Sandisk (SNDK<\/a>), as opposed to just being invested in Nvidia (NVDA<\/a>). <\/p>\n “I still believe there are better opportunities within the AI ecosystem [than Nvidia]. To me, the AI revolution comes to a screeching halt without memory and without power. And when I think about memory, I think about Micron, who’s still trading at just six times forward earnings,” Hennion & Walsh chief investment officer Kevin Mahn said on Yahoo Finance’s Opening Bid<\/a>. <\/p>\n “For every time Micron comes out and says that we can’t keep up with demand, well, who’s going to benefit from them turning away business? It’s going to be SK Hynix (000660.KS<\/a>),” he added. <\/p>\n Brian Sozzi<\/a> is Yahoo Finance’s Executive Editor, host of the Power Players with Brian Sozzi<\/a> podcast, and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi<\/a>, Instagram<\/a>, and LinkedIn<\/a>. Tips on stories? Email brian.sozzi@yahoofinance.com. <\/p>\n Click here for the latest technology news that will impact the stock market<\/a> <\/p>\n Read the latest financial and business news from Yahoo Finance<\/a> <\/p>\n <\/a> Tech insiders hit the buy button. \u00b7 SentimenTrader <\/p>\n