A two-day selloff in US tech stocks wiped approximately $1.3 trillion from the Nasdaq 100's market capitalization as investors grew increasingly uneasy about the scale of AI infrastructure spending and the timeline for returns. But futures pointed to a partial rebound Tuesday morning, with Nasdaq 100 contracts up about 0.6% in pre-market trading.

The story of the day is Micron Technology (MU), reporting fiscal Q3 results after the closing bell. The earnings will serve as a critical pulse check on demand for HBM (High-Bandwidth Memory), a key component in AI accelerators made by Nvidia and its competitors.

The AI Rout, and the Bounce

Monday's session hammered semiconductor and tech stocks across the board: Micron plunged about 12.7%, Nvidia (NVDA) fell 3.3%, AMD (AMD) dropped 5.8%, and Tesla (TSLA) lost 5.8%. Microsoft (MSFT) and Amazon (AMZN) held up relatively better with more modest declines.

The core concern: Big Tech's combined AI infrastructure capex is on track to reach roughly $725 billion in 2026, a sharp increase from last year. Meta, Microsoft, Amazon (AWS), and Alphabet (GOOGL) are spending at a pace that has analysts questioning the return on investment, free cash flow sustainability, and even debt financing capacity.

"It's not necessarily a bubble, but the market is starting to ask hard questions about when all this spending actually generates returns," a Bloomberg market note summarized.

Pre-market activity Tuesday suggests a tentative rebound: NVDA up about 0.7% near $201.40, Alphabet adding 0.5%, while Microsoft edges down 0.7% and Amazon sheds 0.2%.

Micron: The Bellwether

Micron reports fiscal Q3 2026 results after the close today (4:30 PM ET / 11:30 PM Israel time), followed by an analyst call.

The numbers are staggering by any measure: revenue of $33.5–$35.5 billion, up over 280% year-over-year from roughly $9.3 billion. Non-GAAP EPS is expected at $19–$21, a more than 900% improvement from $1.91 a year ago. Gross margins are projected near record levels of around 81%.

Options markets are pricing in a post-earnings move of 11% or more in either direction.

Micron, up more than 250% year-to-date, closed near $1,052 Monday after the sharp selloff. Analysts will scrutinize HBM shipment volumes, pricing trends, and forward guidance, particularly whether Micron can maintain its growth trajectory as Samsung and SK Hynix ramp competing HBM products.

Anthropic Brings @Claude to Slack

Anthropic launched Claude Tag on Monday, a shared AI teammate that embeds directly into Slack channels for Enterprise and Team customers.

Users can tag @Claude in shared channels to delegate tasks: summarizing discussions, running data analysis, writing code, pulling information from company databases, and more. Powered by the Claude Opus 4.8 engine, the assistant operates asynchronously and can proactively monitor channels even when not explicitly tagged, functioning as a persistent "AI team member."

The feature is in beta for Enterprise and Team subscribers. Anthropic is discontinuing its previous Slack integration, with an August 3 migration deadline.

The launch follows Anthropic's blockbuster $65 billion Series H at a ~$965 billion post-money valuation and its confidential IPO filing.

Abu Dhabi's $50B AI War Chest, and a Seed Round

Abu Dhabi's MGX investment platform raised approximately $50 billion from sovereign wealth funds and institutional investors, creating one of the world's largest dedicated AI investment vehicles. The fund targets AI infrastructure, technology deals, and economic diversification for the UAE.

On the startup front, Jarvie AI, a San Francisco-based company building consumer AI assistants for group messaging, raised $8.3 million in seed funding led by a16z, Base10 Partners, and Lightspeed. The product will launch initially on iMessage, focusing on long-term memory, scheduling, conversation summaries, and everyday task assistance.

Nvidia's Annual Meeting

Nvidia holds its virtual annual stockholder meeting today at 9:00 AM PT (7:00 PM Israel time). The agenda is routine, director elections and compensation approval, but given the current market sentiment, any remarks from management will be closely watched.

The Bottom Line

US tech stands at a critical juncture. On one hand, demand for AI products, from hyperscale cloud servers to HBM memory, continues to break records, and capital spending has never been higher. On the other hand, the market is starting to price in risks, not about demand itself, but about return on investment, financing capacity, and when the spending spree translates to the bottom line.

Micron's report tonight will offer the first major answer.