TradingKey – U.S. stocks plummeted again yesterday, with the Nasdaq Composite Index closing down 2.21%, the Nasdaq 100 ETF (QQQ) down 3.29%, and the Philadelphia Semiconductor Index falling as much as 7.87% in a single day.

This decline was dragged down by leading tech stocks. Yesterday, Micron ( MU) plummeted 13.18% to $1051.77. The market views the memory giant’s upcoming earnings report as a ‘touchstone’ for the AI supply chain, which will influence investors’ judgment on the AI hardware chain, semiconductor cycle, memory price-hike cycle, and valuations of high-flying tech stocks.

There is widespread market concern over the risk of over-revised earnings expectations. If valuations price in the positive earnings outlook too early, even…