Premarket Highlights: Chip Giants Rally as Alibaba Stumbles on Earnings Weakness

Key Takeaways

Table of Contents

Semiconductor leaders Micron, Nvidia, and Qualcomm rallied in early trading as their CEOs accompanied Trump to China
Alibaba stock declined even after net profit doubled, due to adjusted earnings plunging nearly 100% annually
EchoStar shares jumped 8.5% following FCC clearance for spectrum sales to AT&T and SpaceX
Nextracker soared 14% on strong Q4 results and upgraded fiscal 2027 revenue guidance
Ring Energy plunged 18% on dilutive equity offering priced at $1.35 per share

Equity futures pointed toward a higher open Wednesday morning as market participants watched President Donald Trump’s high-stakes meeting with Chinese President Xi Jinping in Beijing.

Semiconductor stocks dominated premarket action. Micron advanced 6.1%, Nvidia gained 2.4%, and Qualcomm rose 4.9% before the opening bell. Chief executives Sanjay Mehrotra, Jensen Huang, and Cristiano Amon from these respective companies were accompanying Trump on his diplomatic mission.

Micron Technology, Inc., MU

Alibaba stock declined 1.3% even as the e-commerce giant beat earnings expectations at first glance. The Chinese tech behemoth posted fourth-quarter net profit of 23.50 billion yuan ($3.41 billion), approximately doubling year-over-year figures thanks to investment-related gains.

Yet the adjusted net income figure — excluding those one-time gains — totaled only 86 million yuan. This represented a near-complete collapse compared to the same quarter last year. Top-line revenue expanded 3% to reach 243.38 billion yuan.

EchoStar emerged as the S&P 500’s strongest premarket performer, surging 8.5%. The Federal Communications Commission granted approval for the company’s planned wireless spectrum divestiture to AT&T and SpaceX.

Nextracker and Intuitive Machines Post Strong Gains

Nextracker represented another significant winner, climbing 14% after delivering adjusted EPS of $1.05 alongside revenue of $881 million, surpassing analyst projections on both metrics. Management also boosted its fiscal 2027 revenue forecast to a range of $3.8 billion to $4.1 billion.

Intuitive Machines advanced 9% after securing selection by the U.S. Space Force for the Andromeda IDIQ program. This contract focuses on advanced space tracking technology. The win marked the firm’s first major contract following its $800 million purchase of Lanteris Space Systems.

Wolfspeed rocketed 31% higher after receiving a bullish call from Citrini Research on the semiconductor manufacturer.

Oklo added 2.2% after posting a smaller-than-anticipated loss. While the nuclear energy company remains pre-revenue, it achieved an important regulatory win last week when the Nuclear Regulatory Commission approved fundamental guidelines for its Aurora facility.

Equity Offerings Pressure Drone and Energy Names

Karman Holdings slipped 5.4% after first-quarter results fell short of Wall Street expectations, even as revenue surged 51%.

Ring Energy tumbled 18% after announcing a public offering of 44.44 million shares priced at $1.35 per share. The transaction is projected to generate approximately $60 million in proceeds, with the majority earmarked for debt reduction.

Red Cat Holdings retreated 10% after unveiling a secondary offering of 23.94 million shares at $9.40 each. The drone manufacturer indicated proceeds would support acquisitions, business expansion, and R&D initiatives.

Investor attention remained centered on developments from Trump’s Beijing summit, with many hoping for progress toward reducing trade friction between the world’s two largest economies.

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