Key Takeaways
- Micron Technology (MU) shares soared 18%, pushing its market capitalization to $1.398 trillion and surpassing Meta Platforms (META) and briefly Tesla (TSLA) for the first time.
- Micron projected Q4 revenue of $50 billion, far exceeding Wall Street estimates of $43.2 billion, driven by an insatiable demand for high-bandwidth memory (HBM) chips used in AI accelerators.
- DeepSeek announced plans to double its staff across all departments as the Chinese AI startup scales to meet explosive user growth and compute demands.
- UBS raised its price target for Qualcomm (QCOM) to $235 from $170, citing a robust data center roadmap and a projected $65 billion revenue target by fiscal 2029.
- Geopolitical tensions rose in the Strait of Hormuz as Iran’s IRGC warned against unauthorized maritime routes, despite Oman's efforts to facilitate free transit under a U.S.-Iran memorandum.
Micron Hits Trillion-Dollar Milestone on AI Tailwinds
Micron Technology (MU) dominated market headlines on Thursday after issuing a blockbuster revenue forecast that reaffirmed the strength of the artificial intelligence infrastructure boom. The company’s stock surged 18.4% to $1,244.40, lifting its market valuation to $1.398 trillion. This rally allowed the memory chipmaker to eclipse Meta Platforms (META), valued at $1.392 trillion, and briefly overtake Tesla (TSLA), which sat near $1.4 trillion.
The surge followed Micron's fiscal third-quarter results, where revenue quadrupled year-over-year to $41.46 billion. Investors were particularly encouraged by management's disclosure of $22 billion in customer commitments for its chips, signaling that the shortage of critical AI components like HBM4 memory will likely persist through 2027. Analysts noted that Micron has successfully transitioned from a cyclical commodity producer to a structural pillar of the AI economy.
Tech Sector Momentum and Analyst Upgrades
The broader technology sector saw significant gains following Micron's lead, with the Nasdaq rising 234.68 points (0.92%) in early trading. Qualcomm (QCOM) also received a major boost as UBS hiked its price target to $235, up from $170. The upgrade reflects Qualcomm's aggressive expansion into the data center and "edge AI" markets, with the firm targeting $5 billion in data center revenue by 2027.
In the private sector, Chinese AI standout DeepSeek is reportedly planning to double its headcount to manage its rapidly expanding user base. The startup has faced recent compute constraints, leading to temporary restrictions on its "Expert Mode," but expects relief in the second half of 2026 as new Huawei Ascend 950 hardware comes online. The aggressive hiring spree underscores the intensifying global arms race for AI talent and infrastructure.
Political and Global Developments
In Washington, Speaker Mike Johnson is scheduled to meet with President Trump at the White House at 2:00 PM today. The meeting follows a period of legislative friction after Trump abruptly signaled opposition to a bipartisan housing bill, demanding that Congress first prioritize the SAVE Act regarding voter identification. Johnson has expressed optimism that the housing legislation, aimed at lowering costs for American families, will still be signed within the required 10-day window.
Internationally, the Strait of Hormuz remains a flashpoint of concern for global energy markets. While Oman and Iran's foreign ministers discussed coordination for maritime transit, the Islamic Revolutionary Guard Corps (IRGC) issued a stern warning that any vessels using non-Iranian designated routes "will be dealt with." Despite these threats, oil prices remained stable near pre-war levels, with Brent crude trading around $72.90 as shipping partially resumed under a temporary 60-day arrangement.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.