After Micron Technology (MU) delivered a blowout quarter Wednesday after the bell, and IBM announced a breakthrough chip that measures less than a nanometer, the AI tech space seems to be treating the recent selloff as little more than a valuation hiccup.
Micron (MU) is up 17% in the pre-market, with IBM ahead by more than five percent prior to the cash market open.
IBM's development is truly remarkable:
IBM said the 0.7-nanometer chip packs nearly 100 billion transistors onto a fingernail-sized surface, about twice the density of its 2-nanometer chip unveiled in 2021, delivering up to 50% higher performance or 70% greater energy efficiency.
A nanometer, by the way, is tiny, microscopic. One inch contains 25,400,000 nanometers, so the conversion factor is fixed: 1 in = 25.4 million nm.
Micron's fiscal third quarter earnings and forecast were eye-popping:
Revenue hit $41.5 billion, well above expectations. Adjusted earnings came in at $25.11 per share. Gross margin reached 84.9%, topping estimates and more than doubling from a year ago.
These events, and the otherwise positive general sentiment surrounding the chip sector has NASDAQ futures up more than two percent (600+ points) Thursday morning. The index has shed more than 1000 points in the first three trading sessions this week, but "Turnaround Thursday" appears to be in the offing as companies and investors continue throwing billions into the high tech AI race.
Dow and S&P futures are also responding positively, the Dow up 125 points and the S&P futures ahead by more than 60.
While there are no guarantees in life or stocks, the overarching tone remains wildly positive. Like Dick Cheney once piping, "deficits don't matter," the attitude today may best be desribed as one of "valuations be damned." Chips and the AI race have dominated markets this year and the trend isn't about to fall off a cliff, as some of the more dour analysts have suggested.
Thus, it's full steam ahead for the sector, pulling the major averages back toward all-time highs.
Elsewhere, in the face of enormous pushback by Israel and neocons everywhere, the nascent peace proposal between the U.S. and Iran seems to be holding up quite well, with cargo ships passing through the Strait of Hormuz unfettered and the U.S. naval blockade all but put to rest.
WTI crude oil has broken below $70/barrel as oil flows continue to improve and the warring parties have chosen a more expedient means by which to settle their differences and divvy up the oil and commodity trade in the region.
Everything is in place for a monster session Thursday, probably extending through Friday and possibly into next week, with the 250th celebration of Independence Day in the U.S. to cap off next week (four trading sessions, markets closed Friday, July 3).
Market euphoria may be spilling over into precious metals. After the BEA released May's Core PCE Index (excludes food and energy) with a reading of +0.3% monthly and up 3.4% annualized, now at the highest level since Nov 2023, silver and gold got a much needed boost after wicked declines over the past month. Silver gained more than two percent, up to $58.70, though gold was still lagging, up less than one percent, at $4,039 per ounce. It may be premature, but both metals may have seen near term bottoms this week.
The PCE Index may appear to be pointing toward more inflation, but insider looks see most of the increases in services rather than good, and, with the price of oil tumbling back toward pre-war levels, the general PCE Index is likely to post a smaller increase than many have predicted. Most of the higher inflation numbers have come within the framework of the Iran-U.S. conflict, but a cessation of hostilities will certainly have a cooling effect.
Stocks open within minutes on Wall Street.
Buckle up.
At the Close, Wednesday, June 24, 2026:
Dow: 51,848.90, +182.06 (+0.35%)
NASDAQ: 25,476.64, -110.40 (-0.43%)
S&P 500: 7,358.22, -7.24 (-0.10%)
NYSE Composite: 23,493.55, +29.92 (+0.13%)
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