US futures hold higher as tech shares lead the charge after Micron earnings ease AI fears
It was always going to be either a hit or a miss. But in the end, things are setting up for quite the blockbuster open later in Wall Street. That as investors got the confirmation they needed this week. All eyes had been fixated on Micron earnings and boy, did they deliver. In case you missed it:
- Micron stock rips higher after reporting earnings
- Micron smashes estimates with $41.5B quarter, guides to $50B on AI memory surge
As we all know, it isn’t enough to just deliver on earnings expectations these days. The guidance matters a lot too. And Micron definitely eased fears on the AI trade as they projected revenue of $50 billion for the next fiscal quarter with a gross margin of 86%. Adding to that comfort is that they said their High Bandwidth Memory (HBM3E and HBM4) is fully booked through calendar year 2027, with demand stretching into 2028.
No signs of a demand plateau yet. And so, the show goes on.
S&P 500 futures are now up 0.7% with Nasdaq futures up 2.0% on the day. And it’s all riding on Micron’s signal that the AI trade has more room to run again. Micron shares itself are up over 16% in pre-market, set to eclipse the Monday high.
Meanwhile, Sandisk is also seeing shares move up over 14% in pre-market with other big tech names benefiting too. Besides that, Qualcomm is also seeing shares up over 11% after its own its Investor Day, where its management laid out high-growth AI initiatives expanding into data centers.
As for big tech, the party rages on with Nvidia shares up 1.3%, AMD up 3.7%, and Intel also seen up 5.8% in pre-market trading.
This article was written by Justin Low at investinglive.com.