Micron Technology (MU) saw its stock plummet by 5.08% in Tuesday's trading session, as the tech sector faced significant pressure amid growing concerns of an AI bubble and a broader market sell-off. The sharp decline comes as investors reassess the valuation of technology stocks, particularly those tied to the artificial intelligence boom.

The slump in Micron's stock price aligns with a wider trend affecting major tech companies and semiconductor manufacturers. Advanced Micro Devices (AMD) also experienced a similar 5% drop, while other tech giants like Nvidia, Palantir, Tesla, TSMC, Microsoft, Amazon, and Meta all saw declines ranging from 2% to 3%. This sector-wide downturn suggests a shift in investor sentiment towards technology stocks, especially those that have seen substantial gains tied to AI enthusiasm.

Market analysts point to concerns about inflated valuations in the tech sector, particularly among the so-called "Magnificent Seven" stocks. Rob Arnott, chairman of Research Affiliates, warned that some Big Tech stocks may be in "bubble territory," highlighting the potential for a market correction. The S&P 500's information-technology sector, which includes Micron, is on track to potentially end its seven-month streak of gains, reflecting the growing caution among investors in the face of what some see as unsustainable valuations in the AI-driven tech rally.