Chip Stocks Rally Thursday: Micron (MU), Intel (INTC), Qualcomm (QCOM) Lead Market Surge

Key Takeaways

Table of Contents

Micron Technology’s shares skyrocketed 18% in pre-market hours following a stellar earnings report that revealed 346% year-over-year revenue growth
Memory and storage stocks rallied in tandem, with Western Digital, Seagate, and Sandisk posting gains ranging from 8% to 15%
Qualcomm stock jumped 12% after the company announced ambitious plans to reach $40 billion in non-smartphone revenue by 2029
Wendy’s shares climbed more than 15% as retail traders on Reddit’s WallStreetBets community piled into the stock
Alibaba’s American depositary receipts declined following allegations from Anthropic regarding unauthorized AI model access

Micron Technology experienced a remarkable 18% surge during Thursday’s pre-market session following the release of quarterly results that significantly exceeded analyst projections.

Micron Technology, Inc., MU

The memory chip manufacturer reported a staggering 346% year-over-year revenue increase. Looking ahead to the fourth quarter, Micron provided guidance calling for adjusted earnings between $30 and $32 per share—substantially higher than the analyst consensus of $25.72.

The company projects quarterly sales ranging from $49 billion to $51 billion, surpassing the Street’s expectation of $43.58 billion by a considerable margin.

Micron’s impressive performance created a ripple effect throughout the memory and storage sector. Sandisk shares climbed 15%, Western Digital advanced 12%, and Seagate Technology posted an 8.4% increase.

Broader semiconductor stocks also participated in the rally. Applied Materials appreciated 7%, Intel advanced 5.1%, Marvell Technology gained 3.7%, and Corning rose 8.8%.

Corning received an additional boost after announcing a quarterly dividend distribution Thursday, further enhancing investor sentiment.

Qualcomm Unveils Bold Growth Strategy

Qualcomm shares rocketed 12% higher after management presented updated financial targets during a company investor day.

The semiconductor giant established a fiscal 2029 objective of generating more than $15 billion from data center operations. Additionally, the company aims for $10 billion in automotive chip revenue and over $14 billion from Internet of Things applications.

These projections collectively position Qualcomm to achieve $40 billion in revenue from non-smartphone segments by fiscal 2029. The company also revealed Meta Platforms as a new client.

Qualcomm anticipates that smartphone chips will represent only one-third of total chip revenues by 2029, marking a significant shift from its current business composition.

Wendy’s Extends Rally on Retail Trading Activity

Wendy’s shares added another 15% Thursday, building on momentum generated by social media activity on Reddit’s WallStreetBets community that attracted retail investor interest.

Analysts at Vanda Research noted the movement displayed “clear echoes” of the retail-fueled short squeeze phenomena witnessed during 2021.

Alibaba Slides on AI Controversy

Alibaba’s American depositary receipts declined 3% while its Hong Kong-listed shares touched their lowest level in 16 months.

The weakness followed emerging reports that artificial intelligence company Anthropic had communicated with White House officials and members of Congress, alleging that Alibaba orchestrated a systematic campaign to improperly obtain access to its Claude AI technology.

Broader Chinese technology shares also weakened. Both Xiaomi and Baidu retreated more than 3%.

ARS Pharmaceuticals tumbled 23% after disclosing that its epinephrine nasal spray received no additional insurance coverage approvals in the July 1 decision cycle.

Taysha Gene Therapies declined 10% following the announcement of a public equity offering designed to generate approximately $200 million in capital.

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