25.06.202613:34:18UTC+00Chip Stocks Surge After Micron Earnings

US equity indices advanced on Thursday after Micron’s earnings report revived confidence in the artificial intelligence trade. The Nasdaq 100 climbed more than 2%, the S&P 500 gained nearly 1%, and the Dow Jones Industrial Average added 300 points to notch a record high. Micron shares jumped 17% after the company beat earnings and revenue forecasts and guided for about $50 billion in revenue for the quarter ending in August, well above the $43.2 billion consensus. Confidence in the AI infrastructure space was further underpinned by Micron’s announcement of 16 longer-term supply contracts.

Qualcomm also rallied 10% after the chipmaker doubled its forecast for non-handset revenue over the next three years and unveiled a partnership with Meta. Softer inflation concerns lent additional support to the broader market as energy prices continued to decline and the PCE price indices came in roughly in line with expectations, bolstering more traditional sectors. Bank stocks gained as well, with lenders set to increase dividends after successfully passing the Federal Reserve’s latest stress test.