US chip stocks plunged last night, but this might be a 'mistaken sell-off'! Here's what you should do

Conclusion first: Last night, US memory chip stocks plummeted — Micron fell 13%, South Korea's SK Hynix and Samsung both fell 12%, and the South Korean stock market experienced two circuit breakers in a single day (a mechanism that halts trading after a sharp drop). But don't rush to declare "the AI bubble has burst."
My view is: This is more like a "deleveraging" event (forced selling by leveraged positions that borrowed to increase holdings), not a deterioration in company fundamentals. If you hold chip stocks or are thinking about bottom-fishing, this directly determines your next move.
Why are the biggest gainers leading the decline?
Micron is up 234% this year, Hynix 292%, Samsung 159% — and these were the ones that fell the hardest last night. Typically, a bubble burst sees the most expensive and speculative names fall first; but last night, the biggest winners and most popular stocks fell. This suggests it's not that people suddenly think AI is failing, but that leveraged funds are being forced to sell (the trigger was South Korea tightening regulations on leveraged financial products). Those being liquidated can only sell the most liquid, most profitable stocks, so the biggest winners fall first.
It's not just chips; it's "everyone is swapping for cash"
The same night, gold fell 2%, silver fell 6.6%, Bitcoin fell 1.9%, while the US dollar rose. These assets usually have different drivers, yet they were all sold — indicating funds are "swapping for cash," selling whatever they can, not specifically bearish on any one thing. This is the classic look of "deleveraging."
What you should do (three steps)
One: Don't rush to catch the falling chip knife. Forced liquidations often last more than one day. Jumping in to buy the dip now is likely just providing an exit for those still being liquidated.
Two: Watch this key signal tonight: Micron (after US market close today) reports earnings. If its results and forward guidance are stable, it shows last night was a "mistaken sell-off" and could be an opportunity. If even its guidance weakens, then it's time to truly worry about fundamentals.
Three: Before seeing the earnings report, watching is better than betting. Figure out if it's a leverage problem or a fundamentals problem before deciding.

$Micron Tech(MU.US)