Micron Forecast Reignites AI Optimism; Global Futures Surge

Global equities and U.S. stock futures jumped Thursday after Micron Technology (NASDAQ: MU) reported fiscal third-quarter results that blew past Wall Street estimates, brushing aside recent fears of a near-term pullback in the AI trade, according to multiple reports.

Nasdaq 100 futures rose 2.1% as of 8:00 a.m. ET, while S&P 500 futures gained 0.7%. Micron shares surged 18% in premarket trading, pushing semiconductor indices higher. The iShares PHLX SOX Semiconductor Sector Index ETF (SOXX) climbed 5%, and a DRAM-focused index rose 12%, according to a Zerohedge report.

The move extended to Asia. South Korea’s KOSPI index rallied 5.5% overnight, lifted by Micron peers SK Hynix and Samsung Electronics. Europe’s Stoxx 600 edged up 0.6%, with technology stocks far outperforming.

**Record results and industry-leading margins**

Micron reported earnings per share of $25.11, beating consensus by $4.72, on revenue of $41.5 billion that topped estimates by $6.4 billion, the company said. Revenue quadrupled from the prior year, according to a Nasdaq report citing the earnings release. Net income reached $28 billion, up from $1.8 billion a year earlier, the same report noted.

The standout metric was gross margin, which came in at more than 84%, surpassing the 74% gross margin of AI chip leader Nvidia. Micron forecast gross margin of 86% for the current quarter, suggesting the elevated level may be sustained, according to a separate Nasdaq analysis.

For the current quarter, Micron guided to $50 billion in revenue, according to Nasdaq, providing further evidence that demand for memory remains robust as data centers and GPU clusters scale.

**Demand outstrips supply**

Memory supply has been unable to keep pace with AI-driven demand. Micron told investors that tight conditions are expected to persist beyond fiscal 2027 and that the company has “no line of sight on when supply can catch up with demand,” a Zerohedge report said.

Analysts at UBS have said DRAM is likely to be constrained until at least halfway through 2028, while NAND is likely to be constrained until the end of 2027, Nasdaq reported.

Micron also disclosed it has secured 16 customer contracts with durations of three to five years, including deals with data centers and automakers, that could bring in $22 billion in revenue, providing “solid visibility into future revenue,” the same report added.

**Caution amid the euphoria**

Not all analysts are convinced the memory maker has shed its cyclical nature. Bernstein analyst Mark Newman, in a research note cited by Nasdaq, said Micron’s new strategic customer agreements could include pricing ceilings. “We wonder if the ceiling suggests limited headroom,” he wrote, suggesting the contracts would not avoid cyclicality.

Conversely, Wedbush analyst Dan Ives struck an optimistic tone. “We are seeing no cracks in AI demand on the chips/hardware or software front which gives us a bright green light to own the core tech winners into year-end,” he said in a note, as reported by Nasdaq.

Barclays global chair of research, Ajay Rajadhyaksha, acknowledged the risk of invoking the dotcom bubble but argued the current cycle is different. “Earnings have exploded, order books are full into 2027, and forward multiples are eminently reasonable,” he said in a note cited by Zerohedge.

**Qualcomm also rallies**

The AI optimism extended to Qualcomm (NASDAQ: QCOM), which jumped 12% in premarket trading after estimating more than $15 billion in annual revenue by fiscal 2029 from AI components in data centers, according to Zerohedge.

**Broader market: not an ‘everything rally’**

Despite the surge in tech futures, the gains were not broad-based. Cyclical sectors showed mixed performance, with banks flat, energy stocks lower alongside crude, and defensive sectors like staples and healthcare weaker. Brent crude oil fell 1.4% to below $73 a barrel, erasing war gains amid fears of a supply glut.

The yield curve steepened slightly with bond yields flat to two basis points higher, and the U.S. dollar opened lower for the first time in six sessions, Zerohedge reported.

The so-called Magnificent Seven — Microsoft, Amazon, Meta, Apple, Alphabet — were all trading lower in premarket action, reflecting a rotation away from hyperscalers toward semiconductor names that directly supply the AI infrastructure.