Micron Technology surged 16% after delivering a strong earnings beat that exceeded lofty Wall Street expectations. The chipmaker also unveiled a slew of new deals, reinforcing confidence in AI-related memory demand and lifting futures on the tech-heavy Nasdaq.
The blockbuster report comes as markets await the May personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, due Thursday at 8:30 a.m. ET. The data will shape expectations for interest rate policy, with tech stocks particularly sensitive to borrowing costs.
While Micron's results ignited a rally in AI chip stocks, some market professionals see a growing risk of public backlash against artificial intelligence. The concern adds a new layer of uncertainty to a tech rally already under scrutiny over its staying power, potentially capping gains for the broader sector.
Analysts remain broadly bullish on Micron, citing its pipeline of deals and momentum in AI chips. However, the inflation reading due Thursday could either extend or derail the rally, depending on whether it signals persistent price pressures that might delay rate cuts.