Micron Technology Inc. shares surged as much as 19% after the chipmaker reported revenue more than quadrupled to $41.46 billion from $9.3 billion a year earlier, crushing lofty expectations. The blockbuster results, released Wednesday, also included a string of new partnerships that have analysts projecting further momentum. The rally lifted Nasdaq futures and fueled broad optimism in AI-related semiconductors, with the firm's forecast reinforcing confidence about demand for memory chips used in artificial intelligence systems.
Wall Street is now bracing for the next catalyst: May's personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, due Thursday at 8:30 a.m. ET. The data could shape rate expectations and test the durability of the tech-fueled rally. Oil prices slid back to pre-war levels as investors rotated toward growth names, though the broader market remains sensitive to any inflation surprises.
Yet not all analysts are unreservedly bullish. A growing chorus on Wall Street warns of a potential AI backlash, citing rising public anger toward the technology as a risk to the sustained rally. Some strategists also question whether Micron's torrid pace is sustainable, given the cyclical nature of memory chips and the possibility of demand normalization. The coming weeks will test whether this surge is a durable trend or a peak in enthusiasm.