Equities: Micron earnings lift Korean equities – MUFG

FXStreet Insights Team FXStreet

MUFG highlights that strong earnings guidance from Micron Technology, a key AI memory supplier, has boosted sentiment in AI and tech stocks. Revenue guidance far exceeded expectations and new strategic agreements supported a sharp rebound in South Korean equities, with the Kospi recovering most of its earlier sell-off, though FX spillovers have remained limited so far.

Micron surprise supports AI equity sentiment

"The other main development overnight was the release of strong earnings update from Micron Technology."

"The largest US maker of computer memory chips announced that revenue in the fiscal fourth quarter will be approximately USD50 billion coming in well above analysts’ estimate of USD43.2 billion."

"Micron and its peers in the memory space such as Samsung Electronics and SK Hynix have become major beneficiaries of the AI infrastructure build out."

"The strong earnings update from Micron has helped South Korean stocks to rebound overnight after the heavy sell-off at the start of this week and will provide a boost for investor sentiment in AI/tech stocks more broadly."

"The Kospi equity index has risen by around 6% overnight and has now almost fully reversed the outsized sell-off on Tuesday."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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FXStreet Insights Team

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