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What’s happening: Shares of Micron Technology fell on Thursday after the company released its results for the fiscal third quarter.
What happened: The memory chip maker posted better-than-expected sales and earnings for the latest quarter.
Amid growing AI investments by companies, Micron’s data centre revenues doubled from the year-ago quarter.
How were the results: The Boise, Idaho-based company reported double-digit growth in sales for the three months ending May 29.
Why it matters: Several cloud companies, including Google, have announced plans to make huge investments toward expanding their AI infrastructure this year, boosting the demand for data centres and memory chips.
While Micron’s data centre revenues doubled, sales of its high-bandwidth memory (HBM) chips surged around 50% in the third quarter.
The company reported operating cashflow of $4.61 billion, up from $3.94 billion in the previous quarter and compared to $2.48 billion in the year-ago quarter.
For the fourth quarter, management guided to revenues and earnings of $10.7 billion and $2.50 per share, higher than market estimates of $9.88 billion and $2.01 per share, respectively.
“We are on track to deliver record revenue with solid profitability and free cash flow in fiscal 2025, while we make disciplined investments to build on our technology leadership and manufacturing excellence to satisfy growing AI-driven memory demand,” CEO Sanjay Mehrotra said.
At least 16 analysts, including JP Morgan, BofA Securities, Barclays, Citigroup, and Wedbush, raised their price targets on the stock following the release of quarterly earnings.
With investors looking for exposure to AI infrastructure stocks, Micron’s shares had almost doubled since April.
How shares responded: Micron’s shares fell 1% to close at $126.00 on Thursday following the release of quarterly earnings. The stock has added around 31% over the past month.
What to watch: Investors will continue monitoring demand for AI-related products, which is expected to significantly impact the company’s performance ahead.
Context: The EUR/USD forex pair rose on Thursday, hitting a new high since 2021.
Details: The ceasefire agreement between Iran and Israel is holding, providing a boost to overall risk sentiment.
The US dollar came under pressure on growing concerns around the independence of the Federal Reserve on reports of President Donald Trump looking for an early appointment of the new Fed chief. While Trump has been pushing for interest rate cuts, Jerome Powell has warned of inflation risk due to the government’s tariff policy.
Weakness in the US dollar lent support to the EUR/USD pair. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell around 0.4% on Thursday.
NATO allies announced plans to raise their defence spending from 2% of GDP to 5% by 2035. This triggered speculations of NATO countries, especially Germany, needing to raise borrowings to meet the target.
The EUR/USD forex pair rose to 1.1704 on Thursday, while the EUR/GBP pair fell to 0.8525. The STOXX Europe 600 Index added 0.09% to close at 537.48.
What to watch: Investors await the release of economic data on economic sentiment (1300 UAE Time), consumer confidence (1300 UAE Time) and industrial sentiment (1300 UAE Time) from the Eurozone today. Eurozone’s economic sentiment indicator, which rose for the first time in three months to 94.8 in May, is expected to increase further to 95.1 in June.
Analysts expect the Eurozone consumer confidence indicator to decline to -15.3 in June, from -15.1 in the previous month, while the industry confidence indicator is projected to improve to -9.9 in June, from -10.3 in May.
Other Markets: US trading indices closed higher on Thursday, with the Dow Jones index, S&P 500 and Nasdaq 100 up by 0.94%, 0.80% and 0.94%, respectively.
In his first appearance since the Israel-Iran ceasefire, Ayatollah Khomeini said that the US had failed to achieve any strategic objective. WTI continued to rise this morning.
Ukraine and Russia exchanged another group of captured soldiers on Thursday. The news sent the safe-haven US dollar index lower in forex trading this morning.
Canada’s wholesale sales declined 0.4% in May. This being a deceleration from April’s 2.3% contraction sent the CAD/USD pair lower in forex trading this morning.
Brazil’s CPI rose by 0.26% during the first half of June. However, this being the slowest pace in five months lent support to the BRL/USD forex pair.
US pending home sales grew by 1.8% in April, following a 6.3% decline in the previous month, which sent the Dow Jones index higher by over 400 points on Thursday.
Italy’s business confidence (1200 UAE Time), consumer confidence (1200 UAE Time), industrial sales (1300 UAE Time), 10-year BTP auction (1310 UAE Time), 5-year BTP auction (1310 UAE Time) and PPI (1400 UAE Time), China’s current account (1300 UAE Time), Eurozone’s consumer inflation expectations (1300 UAE Time), selling price expectations (1300 UAE Time), services sentiment (1300 UAE Time) and industrial sales, Brazil’s IGP-M inflation (1500 UAE Time), bank lending (1530 UAE Time), unemployment rate (1600 UAE Time) and net payrolls (2130 UAE Time), Spain’s business confidence (1500 UAE Time), India’s foreign exchange reserves (1530 UAE Time), Mexico’s unemployment rate (1600 UAE Time), Canada’s GDP (1630 UAE Time), US core PCE price index (1630 UAE Time), personal income (1630 UAE Time), personal spending (1630 UAE Time), Michigan consumer sentiment (1800 UAE Time), Michigan consumer expectations (1800 UAE Time), Michigan current conditions (1800 UAE Time), Baker Hughes oil rig count (2100 UAE Time) and Baker Hughes total rigs count (2100 UAE Time).
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