Micron () earnings came in 22.5% higher than forecast, up 206% q-o-q, +1,315% y-o-y. Revenue was up 116% q-o-q, +270% y-o-y. These were better than the most bullish forecasts. Company guidance was strong, with important new contracts announced.
Tech in general remains volatile. The volatility appears based on the price squeeze that was the memory sector’s strength. Today, Apple () announced a price increase of a couple hundred dollars for their computers and laptops due to memory and other component price increases. They didn’t mention iPhone increases yet. AI demand is putting pressure on the cost of chips for everyone else. Apple is down 5.5% today, +1.8% YTD, +37.3% LTM, down 12.8% from its June 2nd all-time high.
Once again, the non-tech-heavy parts of the market are doing much better. The hit a new all-time high this morning at 52,655, up 806 points, +1.5%, before pulling back to up 0.9%. The is flat after opening up 46 points, dropping 82 points, rebounding up 96 points, then dropping 63 points. The even-weighted S&P opened +0.7%, rose to +1.5%, then pulled back to +0.9%. The opened up 0.8%, rose to +1.5%, then pulled back to +0.8%.
Crude oil is up a buck, interest rates are slightly higher, precious metals are finally seeing a small bounce, crypto remains very weak, with almost breaking below $58K overnight.
The trend remains positive, with Micron, now up 14% on the day, confirming the red-hot demand for AI hardware, though it may lead to inflationary pressure on all the rest of the chip buyers. The good news is that the AI-led productivity gains are not inflationary.