Micron Earnings Ease AI Bubble Concerns; Asian Markets Mostly Higher

Micron Technology, a major U.S. memory chip manufacturer, released strong financial results after the market closed yesterday, alleviating investor concerns regarding the sustainability of AI investments. Consequently, major Asian stock indices trended upward today.

Micron reported third-quarter revenue of $41.46 billion, significantly exceeding the prior estimate of $35.84 billion and more than quadrupling the figure from the same period last year. Adjusted earnings per share stood at $25.11. Looking ahead, Micron projects fourth-quarter revenue between $49 billion and $51 billion, surpassing analyst expectations of $43.5 billion. Following this announcement, Micron's stock surged approximately 15% in after-hours trading, providing a major boost to market confidence.

The positive sentiment spilled over into the memory sector. South Korea's SK Hynix saw its shares jump 13% today after announcing plans for a $29 billion ADR listing on the Nasdaq, scheduled for July 10. Samsung Electronics also rose over 5%, pushing the KOSPI index up by more than 5%. Markets in Tokyo, Shanghai, Taipei, and Wellington closed higher, while Hong Kong and Sydney experienced slight declines.

Stephen Innes, an analyst at SPI Asset Management, noted: "At a time when the market was questioning whether AI expectations were inflated, Micron provided a definitive answer: demand is accelerating while supply struggles to keep pace. Memory chips have evolved from a supporting role to a core pillar of the AI narrative."

Investors are now turning their attention to the U.S. Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, which may influence future monetary policy.