$AMZN Crosses $2T Market Cap For First Time 👀 | $MU Beats Earnings But Loses On Outlook | Indexes Move After Red Days & All Eyes Move To PCE Report 🤝
The market continued its 2024 rally into Wednesday with Amazon crossing the $2T market cap for the first time ever. Let’s dive straight into index talk:
The S&P500 rose 0.2%
The Dow Jones Industrial edged out 0.04% gain
The Nasdaq Composite won the day with a 0.5% gain
The last couple of sessions have left investors and traders alike wondering if the drop on the market is temporary or the beginning of a proper market correction. Today Amazon led the megacaps higher with a 4% rise on todays session becoming the 5th US company to reach $2T+ value. However the market is looking for clues to a Federal Reserve Cut being delivered after PCE inflation release this coming friday. The Federal Reserve speakers this week cautioned in their decision on a rate cut dependent on incoming data.
On the retail front Rivian shares ran 23% after news of Volkswagen giving the EV maker a $5B cash injection, in return Rivian will hand over IP for its technology aspects of the vehicles. Fedex also made headlines after the stock jumped 15%+ after its 2025 profit forecast came in over Wall Street estimates. Chipotle also started trading at is 50-1 stock split price which was also the largest split in history of the NYSE and the stock went up 0.3%.
Micron Technology Beats Estimates, But Shares Fall on Conservative Forecast 📈
Micron Technology, a leading chipmaker, reported impressive third-quarter revenue on Wednesday, driven by surging demand for its memory chips from the booming artificial intelligence (AI) industry. The company’s revenue of $6.81 billion exceeded estimates of $6.67 billion, according to LSEG data.
The Idaho-based firm’s success can be attributed to its position as one of the few providers of high-bandwidth memory (HBM) chips, which are used in the most advanced AI systems. Micron’s CEO, Sanjay Mehrotra, highlighted the company’s strength in AI products, including HBM and data center solid-state drives (SSDs), which reached a record high.
In March, Micron announced that its entire supply of HBM chips was sold out for 2024, with the majority of 2025 production already allocated. These chips are used in AI processors designed by Nvidia, a Wall Street darling. Despite the strong quarterly performance, Micron’s shares fell 7.2% in extended trading after the company forecast fourth-quarter revenue of $7.6 billion, plus or minus $200 million, which was largely in line with expectations. Investors had sent the stock up 13% this month, ahead of earnings, on optimism that Micron would benefit from AI-driven demand.
The conservative forecast may have disappointed investors, who were expecting a more robust outlook. As a result, shares of Micron’s peers, including Nvidia, Advanced Micro Devices, and Intel, also fell in after-hours trading.
According to a report by ResearchAndMarkets.com, the global AI chip market is expected to grow at a compound annual growth rate (CAGR) of 44.4% from 2023 to 2028, driven by increasing adoption in industries such as healthcare, finance, and retail. Micron’s strong position in the HBM market puts it in a prime position to capitalize on this growth. While Micron’s shares may have fallen on the conservative forecast, the company’s long-term prospects remain strong, driven by the growing demand for AI-powered technologies.
