Micron Technology reported that its customers have committed US$22 billion for its memory chips, a figure that significantly exceeded market expectations and helped alleviate growing investor concerns about the sustainability of artificial intelligence infrastructure spending.
The strong order book signals that demand for high-bandwidth memory and other advanced chips remains robust, countering narratives of a potential slowdown in the sector.
South Korea’s Kospi index surged more than 5% at the open, while Japan’s Nikkei 225 climbed 1%, as investors reacted to the stronger-than-expected sales forecast.
The positive sentiment from Micron’s earnings report rippled through Asian equity markets, driving a sharp rally in tech-heavy indices.
South Korea’s Kospi index surged more than 5% at the open, while Japan’s Nikkei 225 climbed 1%, as investors reacted to the stronger-than-expected sales forecast.
The move reflects a broader relief rally, with traders repricing the risk of an AI capex downturn lower in light of concrete demand data from a key supplier.
This development comes as the semiconductor industry faces scrutiny over whether the current AI boom can sustain its pace.