Micron Earnings Beat Sends Nasdaq Futures Higher as AI Trade Recovers

TLDR

• Micron posted record quarterly results, with revenue up 346% year-over-year, sending shares up 18% in premarket trading
• Qualcomm announced plans to expand into data center chips and servers, targeting $15 billion in new AI-related revenue
• Nasdaq 100 futures jumped 2.2%, S&P 500 futures rose 0.8% on Thursday morning
• Bitcoin slid 1.3% over 24 hours, trading at $61,724 after hitting a 20-month low
• Investors now await the PCE inflation report, the Fed’s preferred inflation gauge, due Thursday

Micron Technology delivered a blowout earnings report on Wednesday, sending tech stocks sharply higher before Thursday’s opening bell. Revenue surged 346% from a year ago, and the company’s guidance of roughly $50 billion for the current quarter beat analyst expectations.

Micron’s shares jumped more than 18% in premarket trading. The results helped calm investor nerves after several rough sessions for chip stocks.

Micron Technology, Inc., MU

Deutsche Bank macro strategist Henry Allen said the results “reignited hopes about AI-fuelled growth and helped to push back against fears we were in some kind of bubble.”

The broader market responded quickly. Nasdaq 100 futures rose 2.2%, S&P 500 futures gained 0.8%, and Dow Jones futures edged up 0.1%. Both the Nasdaq and S&P 500 had fallen on Wednesday as investors sold off semiconductor stocks.

Qualcomm Makes a Move Into Data Centers

Qualcomm added to the positive mood by announcing plans to move beyond smartphones into data center products, including chips and servers. The company set a target of $15 billion in new AI-related revenue from this push.

Qualcomm shares rose more than 12% on the news. The move signals growing competition in the data center chip space as companies race to meet AI infrastructure demand.

The two announcements together helped shift sentiment back toward the AI trade after days of selling pressure.

Oil Drop and Inflation Data in Focus

Oil prices also helped the market on Thursday. Brent crude slipped 0.9% to $73.18 a barrel, and West Texas Intermediate fell 0.7% to $69.83. Prices returned to levels seen before the U.S. and Israel launched strikes against Iran in late February.

Investors are now focused on the Personal Consumption Expenditures Price Index, due Thursday. The PCE is the Federal Reserve’s preferred inflation measure.

Consumer and wholesale price data for May came in hotter than expected, raising concerns about potential rate hikes. The PCE report is expected to give a clearer picture of inflation for the month.

The yield on the 10-year Treasury note ticked up 3 basis points to 4.42%. The U.S. dollar was little changed against a basket of peer currencies.

Bitcoin dropped 1.3% over the past 24 hours to $61,724. The move came after the cryptocurrency hit a 20-month low earlier in the session. Gold also pulled back, trading below $4,000, as rate-hike bets weighed on the metal.

The PCE data, combined with Micron’s earnings, could set the tone for markets heading into the end of the week.

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