$MU Earnings Blowout: AI Demand Overrides Fed’s Hawkish Shift

jfsrevg
15:14

$Micron Technology(MU)$ — Exceptionally strong earnings reinforce that AI demand is pushing through the Fed’s cautious macro narrative.

2 key developments from yesterday:

  • The Fed held rates steady, with the dot plot now signaling just 1 cut for the rest of 2026 (down from 3) with expectation of higher inflation.

  • Micron delivered standout results—EPS +682% at $12.20 (vs $9.31 est), revenue +196% YoY at $23.86B (vs $20B est), with next quarter guidance at $33.5B. The numbers are exceptionally strong for a company nearing half a trillion in market cap.

While it may be gapping down 4% pre-market on increased capex commitments (+$5B, bringing total to $25B), with expectations for further spending into 2027, relative strength remains intact.

Price is still +19% above the March 9 low, a recent low level already lost by $SPDR S&P 500 ETF Trust(SPY)$ . This remains a key name to watch if further market weakness allows MU to rebase above $420 while its moving averages catch up.

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now

Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.

Click to access the activity

Other helpful links:

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment