Microsoft (MSFT), Nvidia (NVDA), and Micron (MU) Crash 10% Collectively. What is Going on?

Shares of technology heavyweights Microsoft MSFT +0.21% ▲ , NVIDIA NVDA +2.02% ▲ , and Micron Technology MU -3.86% ▼ collectively declined by approximately 10% on March 23 after crude oil breached $100 per barrel earlier this month amid escalating U.S.-Iran tensions. The sell-off highlights a direct correlation, as rising oil prices drive inflation and increase energy and production costs for data center operators and semiconductor manufacturers alike.

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Oil Shock Drags Microsoft, Nvidia, and Micron Lower

On Monday, Nasdaq-100 futures pulled back 0.72% by 4:43 a.m. ET as crude futures surged 3%, setting a risk-off tone across Wall Street. Microsoft fell 1.9%, extending a year-to-date decline of roughly 20%. Higher crude prices translate directly into high electricity and cooling costs for Microsoft’s global data centers, pressuring its Azure cloud business.

Similarly, Micron dropped 4.8% despite posting strong fiscal Q2 2026 results on March 18, including $23.86 billion in revenue (nearly triple its year-ago figure) and adjusted earnings of $12.20 per share. As a semiconductor maker, Micron’s fabrication facilities require enormous and constant power, making it directly exposed to production cost increases when energy prices spike.

Nvidia fell 3.1%, unable to hold momentum from its GTC conference the prior week, where it had projected $1 trillion in orders for its Blackwell and Vera Rubin systems through 2027. Rising energy costs make running AI models more expensive for Nvidia’s customers, a potential headwind for demand for its high-powered chips, regardless of near-term order visibility.

Risk-Off Hits AI Sector Peers, Analysts Stay Bullish

The decline extended beyond the three stocks, with Broadcom AVGO +4.02% ▲ down 2.8% and Advanced Micro Devices AMD +1.72% ▲ falling 1.9%. Other sector peers like Intel INTC +0.82% ▲ slipped 0.3%–0.8%, while memory stocks SanDisk SNDK -2.31% ▼ , Seagate STX -1.58% ▼ , and Western Digital WDC +0.42% ▲ lost 4% and over 2%, respectively, in premarket trading last Thursday.

Meanwhile, Asian markets fell 3.1% as tensions in the Middle East intensified, reflecting a rapid increase in risk aversion that extended well beyond U.S. equities. However, sentiment remains positive for the three big stocks.

Based on TipRanks data, analysts set a 12-month average price target of $591.56 for Microsoft, implying 54.91% upside from its last price of $381.87. For Nvidia, analysts maintain an average price target of $274.03, suggesting a 58.67% upside from its last level. Similarly, Micron holds an average target of $536.41, reflecting 26.84% upside from the last price of $422.90.

Is it Good to Invest in Tech Stocks Now?

Monday’s selloff weighed on near-term sentiment, but Wall Street’s outlook remains constructive. According to TipRanks Stock Comparison Center, MSFT retains a Strong Buy consensus from 36 analysts, including 33 Buy ratings, 3 Hold, and 0 Sell. Similarly, NVDA has been rated a Strong Buy by 42 analysts, with 41 Buys, 1 Hold, and 0 Sells. Meanwhile, Micron (MU) also carries a “Strong Buy” rating from 27 analysts, comprising 25 Buys, 2 Holds, and 0 Sells.

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