Investors see Micron earnings as pulse check of AI rally momentum - Yahoo! Finance Canada

Investors are closely watching Micron Technology's upcoming earnings report to gauge whether the U.S. stock market rally fueled by artificial intelligence still has momentum. Despite a recent mid-week... Read original →

Micron’s earnings serve as a litmus test for the sustainability of AI-driven capex. Technically, surging HBM and DDR5 demand is straining TSMC’s CoWoS packaging capacity, inflating GPU BOM costs and creating a memory-compute bottleneck. Compliance-wise, U.S. CHIPS Act subsidies and tightened export controls are pushing Micron to shift test operations to Japan and India, raising operating costs by 12–15%. Competitively, Samsung is quietly advancing HBM4 to capture NVIDIA’s next-gen orders, while SK Hynix leverages its AI server dominance to lock in long-term contracts. Over the next 18 months, if data center capex growth slips into single digits, current >30x forward P/E multiples will collapse, triggering sector-wide repricing. Apple’s Arizona-based Intel partnership bolsters onshore optimism but won’t resolve high-end DRAM shortages. The real tailwind: AI training clusters are turning high-bandwidth memory from an option into infrastructure—fueling a new arms race in memory capacity.