U.S. stock index futures traded higher on Thursday, with the tech-heavy Nasdaq 100 leading gains as semiconductor stocks rebounded following Micron Technology's (NASDAQ:MU) impressive quarterly results. Nasdaq 100 futures rose 2.15% to 30,149.25, while S&P 500 futures gained 0.72%. Dow futures edged up 0.10%, and Russell 2000 futures inched 0.13% higher, reflecting a market split between tech and other sectors.
Micron's Strong Results Fuel AI Chip Rally
Micron Technology surged 17% in premarket trading after reporting revenue of $41.46 billion for the period ending June 24, a dramatic increase from $9.30 billion a year earlier. The company also guided for fourth-quarter revenue of $50.0 billion, plus or minus $1.0 billion. CEO Sanjay Mehrotra highlighted the results as evidence of memory's strategic value in the AI era, noting that Micron is investing at record levels. The company's outlook is supported by $22 billion in customer commitments across 16 strategic agreements, including take-or-pay terms, cash deposits, and price floors, with remaining performance obligations estimated at roughly $100 billion. Sumit Sadana, chief business officer, described these five-year take-or-pay contracts as unprecedented for the industry.
Other AI-related chip stocks also moved higher in early trading. SanDisk (NASDAQ:SNDK), Western Digital (NASDAQ:WDC), and Qualcomm (NASDAQ:QCOM) all saw gains, with Qualcomm laying out a new growth plan targeting over $15 billion in data-center revenue by fiscal 2029. Qualcomm expects Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) to use its new AI chips, and revenue from two unnamed hyperscale custom-chip clients is expected before year-end. CFO Akash Palkhiwala emphasized the company's diversification, while data-center lead Tony Pialis noted customers are "pulling us in."
Market Context and Analyst Views
The rally in AI chip stocks comes after a volatile week for the Nasdaq 100, which has lost over $1 trillion in value amid concerns about hyperscaler spending and a hawkish Federal Reserve. On Wednesday, the Dow gained 0.35%, but the S&P 500 slipped 0.10% and the Nasdaq Composite fell 0.43%. The gap between the Nasdaq and Dow futures stands near two percentage points, highlighting the divergence between tech and other sectors.
Analysts offered mixed views on the sustainability of the AI-driven rally. Daniel Newman, CEO of Futurum Group, said the "AI build out has been underestimated at every turn." However, Jake Behan, who runs capital markets at Direxion, warned that the bull case is built on tightness, and if supply returns, pricing power would be the first risk. Capital.com's Daniela Hathorn said Micron's numbers offered "fresh reassurance" about the AI investment cycle, while Ipek Ozkardeskaya at Swissquote Bank flagged that a stronger inflation reading could further embolden Fed hawks.
Key Economic Data on Tap
Investors are awaiting the May Personal Income and Outlays report and the third estimate for Q1 GDP, both due at 8:30 a.m. EDT. The core PCE price index, the Fed's preferred inflation gauge, is forecast to rise 0.3% for the month and 3.4% year over year. A higher-than-expected reading could reinforce expectations of a rate hike, with CME FedWatch tracking the odds of a September rate increase at 65.4%.
Other Market Movers
Outside the chip sector, FedEx (NYSE:FDX) weighed on premarket trade after reporting a decline in its operating margin at the main Federal Express unit to 7.7% from 8.4%, due to higher wage, outsourced transport, and fuel costs. Shares dropped in after-hours trading despite FedEx forecasting 11% revenue growth for 2026.
Treasury yields edged higher, with the 10-year note yielding 4.415%, up 2.4 basis points. The dollar was mixed against major currencies.
