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Tech Rebound Deepens as Micron’s Blowout Rekindles AI Trade Into Year-End

Cooling inflation helped tech leaders extend gains despite persistent questions over AI spending or Fed timing.

Overview

  • Micron shares hit records after reporting $4.78 EPS on $13.6 billion revenue and guiding to $18.7 billion next quarter, a beat that lifted AI-related stocks broadly.
  • The Nasdaq rose about 1.3% on Friday as megacaps advanced for a second session, stabilizing markets after recent turbulence tied to AI capex scrutiny and rate-cut uncertainty.
  • Alphabet remains a 2025 standout with shares up roughly 60% and its first-ever quarter above $100 billion in revenue, reinforcing AI-led market leadership.
  • Skepticism persists over the scale and financing of AI infrastructure outlays and over the Fed’s path, with some data still distorted by the prolonged government shutdown.
  • Competition to Nvidia drew fresh attention with reports of Google and Meta collaborating on TorchTPU to better support PyTorch, while Nvidia gained on a U.S. review that could allow some China chip shipments.