Micron earnings become crucial test for AI rally momentum as memory chip demand takes center stage

Wall Street Week Ahead: Investors see Micron earnings as pulse check of AI rally momentum

Investors are keenly watching Micron Technology's upcoming earnings report for crucial insights into the ongoing AI-driven stock market rally. Despite recent market jitters, the semiconductor sector's robust demand and significant spending on data centers are fueling optimism. This report will be a key indicator of whether the current surge in chip demand and related profits can sustain its impressive momentum, offering a vital pulse check for the market's AI-fueled ascent. Investors are seeking signs that the U.S. stock market rally fueled by artificial intelligence has more life left in it, and the upcoming Micron Technology earnings will check the pulse of chip demand to see if it is still accelerating. Despite a sharp mid-week selloff, major U.S. stock indexes are hovering near all-time highs, supported by robust corporate earnings driven by an AI investment boom and ⁠relief from ⁠the Iran war. Micron's shares are up 298% this year, and the memory chip maker's quarterly report on Wednesday, June 24, will help investors gauge whether the surge in spending on data centers and the resulting profits generated across the semiconductor sector can continue to surprise to the upside. "There's been a lot of momentum here recently," said Andy Pratt, director of investment strategy at Burney Company. "This AI trend is something that's continued, and honestly, what we see with this revenue surprise signal that we monitor is there's still a lot of juice." Apple has agreed to partner with Intel to design and manufacture chips in the U.S., which could significantly boost the chipmaker's turnaround efforts. That helped to lift ⁠the S&P 500 nearly 1% so far this week, on pace for a second weekly gain. Meanwhile, the Philadelphia SE Semiconductor index hit a record high and was last up 7% for the week. LOOKING FOR REINFORCEMENTSThe stakes are high. Micron's earnings come at ⁠a time when valuations are elevated and investors are questioning whether the rally is overextended. Any indication of underlying demand and continued AI-related spending strength could give investors confidence to keep stoking the rally. Micron's earnings are "setting up as a classic positive feedback loop," said Steve Kolano, chief investment officer at Integrated Partners. "That really seems to be kind of the only game in town. ... If you look at the book to bill of semiconductor companies right now and the backlog, the demand is just through the roof in relation to chip capacity." Big Tech has signaled that AI spending is not slowing, set to rise past $700 billion this year from $400 billion in 2025. US MarketsPowered By As on 19 Jun 2026, 01:30 AM IST S&P 500 Top Gainers Corning194.92(11.13%) Intel133.99(10.64%) Super Micro Computer30.66(10.37%) KLA259.56(8.73%) Gainers" S&P 500 Top Losers Accenture127.98(-17.97%) EPAM Systems76.64(-12.61%) Cognizant Tech Solns43.70(-10.49%) Coterra Energy32.56(-8.62%) Losers" MACRO BACKDROP STILL LOOMS Although the AI narrative has dominated markets, underlying macroeconomic concerns remain. The Federal Reserve's preferred inflation measure is due next week. So, too, is a final reading on first-quarter GDP. Both reports will provide checks on the health of the U.S. consumer and economic growth. Second-quarter earnings growth for the S&P 500 is estimated at 22.9%, down from 29.3% in ⁠the first quarter, according to data provided by Tajinder Dhillon, head of earnings research at LSEG. Drew Matus, chief market strategist at MetLife Investment Management, said strong equity markets have been one of the main supports for consumers, and anything that challenges the AI trade or the continued rise in stocks is being closely watched. "It has not just been market effects but macroeconomic effects at this point," he said. "We're definitely worried about the wealth effect going away and what that might mean." For now, the consensus is that the AI trade remains intact, with little sign of slowing. Newly public SpaceX has reinforced that momentum, and Nasdaq's inclusion of more AI and chip infrastructure names like Astera Labs and CoreWeave will force index funds to buy in. "The way I would view this is," said Burney's Pratt, "you could continue betting on these companies kind of until proven otherwise."

Micron Reports Tonight. The Real Story May Be Nvidia - Micron Technology (NASDAQ:MU)

That's because Micron has become one of the most important suppliers in the artificial intelligence supply chain. This Isn't Just A Micron Earnings Report Wall Street will certainly be watching revenue, earnings and guidance. But investors may be paying even closer attention to commentary surrounding high-bandwidth memory, or HBM. HBM has emerged as one of the most critical components inside modern AI servers. The technology works alongside Nvidia's AI accelerators, helping process and move enormous amounts of data needed to train and run large language models. In simple terms, no HBM means no cutting-edge AI system. As demand for AI infrastructure has exploded, Micron has become one of the biggest beneficiaries. The Real Question Is AI Spending Investors aren't just looking for signs that Micron is executing well. Strong HBM demand, improving pricing and bullish commentary about future orders would suggest that hyperscale customers continue to invest heavily in AI data centers. That would be welcome news for Nvidia, whose growth story remains heavily tied to ongoing AI spending. On the other hand, any signs of slowing demand could raise questions about whether the AI buildout is beginning to moderate. Why Nvidia Investors Are Watching Nvidia has become the face of the AI revolution, but Micron sits closer to the underlying infrastructure. While Nvidia sells the processors, Micron helps provide the memory required to make those systems work. That gives Micron's management team a unique vantage point into one of Wall Street's most important themes. As a result, Wednesday's earnings report could serve as more than just an update on Micron's business. It may become one of the market's first real-time checks on the health of the broader AI spending boom. And for Nvidia investors, that could make Micron's earnings one of the most important reports of the quarter. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Micron Earnings Echo Nvidia's 2023 Moment? Futurum CEO Says Memory Chips Are 'The GPUs Of Three Years Ago

AI Memory Demand Is Reshaping The Industry On Tuesday, in a post on X, Newman shared a clip from his appearance on Yahoo Finance on which he said the era of memory as a commodity business is over, describing memory as "strategic" infrastructure in the AI economy. According to Newman, the key question heading into Micron's earnings is whether the company can continue delivering exceptionally strong profitability as demand for advanced AI memory remains elevated. While some investors worry those conditions may not last, Newman said he sees no evidence that AI-related demand has weakened. Micron Earnings Seen As A Major AI Market Test Newman also pushed back on bearish interpretations of Micron's investment and supply agreement with Anthropic, arguing the deal reflects confidence in future AI demand rather than concern about competitive positioning. He said the market increasingly views memory as a critical component of AI infrastructure rather than a cyclical commodity business. As a result, some investors believe supply constraints could persist well into the next decade. Separately, Newman highlighted a new Futurum Equities research note from analyst Rolf Bulk that maintained a Buy rating and a $1,500 price target on Micron, saying the firm is looking beyond the market's Tuesday "carnage." BofA Securities also raised its price target on Micron to $1,500 from $950 while reiterating a Buy rating. Micron shares fell 13.18% to close at $1,051.77 on Tuesday and rebounded by 1.26% in after-hours trading to $1,065, according to Benzinga Pro. The company's shares have surged 233.45% year to date and are up 722.27% over the past 12 months. AI Spending Outlook Remains Key Newman tied his bullish outlook to expected growth in AI infrastructure spending. He pointed to forecasts calling for trillions of dollars in AI-related capital expenditures over the coming years, with memory expected to capture an increasingly large share of those investments. Micron Drives AI Market Sentiment? Separately, market commentator The Kobeissi Letter pointed to the growing concentration of gains in AI-related stocks, noting that momentum-focused investments have significantly outperformed the broader market. "Tomorrow's Micron earnings release, $MU, now feel a lot like Nvidia earnings days in 2023 and 2024," the commentator wrote on X. Micron Looks To Extend Beat Streak Analysts expect Micron to post third-quarter revenue of $35.01 billion, compared with $9.3 billion a year earlier. The memory-chip maker has exceeded revenue estimates in each of the last five quarters and in nine of the past 10. Wall Street also expects earnings of $20.20 per share, up from $1.91 in the year-ago quarter, with Micron having surpassed EPS expectations for nine consecutive quarters. Benzinga Edge Rankings place Micron in the 99th percentile for Momentum, highlighting strong gains across short, medium and long-term periods. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo Courtesy: gguy on Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Dan Ives Says The AI Revolution Is In The 3rd Inning, Calls Chip Sell-Off A 'Gut Check Moment' As Micron

Wedbush analyst Dan Ives believes the artificial intelligence trade remains in the "third inning," calling Tuesday's pullback in technology and memory-chip stocks a "gut check moment" rather than a sign of weakening demand. AI Demand Remains Strong Speaking on CNBC's Closing Bell Tuesday, Ives said checks in Taiwan and South Korea continue to point to strong demand across the AI supply chain. "We continue to believe this AI Revolution is in the 3rd inning and today's tech sell off was a 'gut check moment' after the Korea-led memory chip sell off overnight," Ives said in a post on X. According to Ives, the demand continues to significantly outpace supply across the AI ecosystem, adding that the recent selloff is "not an indicator of anything from a memory chip perspective or demand softening." Memory Pullback Seen As Healthy Ives said the sharp decline in memory-chip stocks should be viewed as a healthy pullback following a strong run rather than a sign of deteriorating fundamentals. The analyst highlighted SK Hynix and Micron as key beneficiaries of continued AI spending, adding that the demand trends remain intact despite recent volatility. "The pullback in the KOSPI... It's a healthy pullback," Ives added, after South Korea's tech-heavy benchmark, the world's best-performing index this year, fell 10% on Tuesday. According to Ives, the recent weakness represents a buying opportunity across memory, infrastructure and other AI-linked names. Korean Chip Stocks Rebound The pressure eased on Wednesday, with the KOSPI rising 3.20% as Samsung climbed nearly 9% and SK Hynix advanced 2% in Seoul at the time of writing. Price Action: Shares of Micron Technology closed 13.18% lower on Tuesday at $1051.77, and fell further 12.08% in after-hours trading. Benzinga edge rankings indicate MU has a Momentum score in the 99th percentile and a Growth score in the 83rd percentile. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo Courtesy: Jira Pliankharom on Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Micron Earnings Preview: AI Memory Rally Faces Reality Check

Wall Street forecasts blockbuster fiscal Q3 for Micron Technology (MU) when it reports after market this evening, as booming AI data-center demand drives the stock to record levels. Twelve months ago, Micron traded under $100 a share. Now its value has surged into the trillion-dollar range because a once-overlooked component has become essential to the biggest infrastructure build in history. High-bandwidth memory (HBM), mounted directly beside every Nvidia AI processor, is now the critical choke point everyone depends on. Key Highlights * High-bandwidth memory (HBM) is central to Micron's valuation. 2026 HBM supply is fully booked, HBM4 production began shipping for NVIDIA's Vera Rubin platform in March 2026 with a reportedly faster ramp than prior generations, and multi-year demand is being secured through long-term agreements reportedly including Dell. * HBM capacity constraints are spilling over into the broader memory market, squeezing conventional DRAM supply, and lifting prices across the stack. DRAM spot prices have surged 52% since January, NAND is climbing as well, and tight supply is expected to persist through 2027. * Analysts view Micron's adjusted gross profit margin as a key gauge of pricing power and the inventory cycle. Wall Street forecasts a record 81% margin, implying a 432% markup over costs. * More critical will be management's guidance for Q4 sales, earnings, and gross margin since any signs of weakening growth or profitability could trigger a sell-off. * These are unusual times for memory veterans, past inventory and price swings were tied to consumer-electronics cycles, but today's surge is driven by hundreds of billions in data-center spending -- a shock the industry did not anticipate. When that boom began in 2024, memory makers were still reeling from one of the deepest downcycles after the COVID peak; sales and prices had collapsed, Micron took hefty inventory write-downs and recorded four straight quarters of negative gross margin in 2023. * Memory and storage stocks have led recent market gains, with Micron ranking among the S&P 500's top three performers this year as AI data-center hardware demand surges. * Wedbush raised its Q3 estimates Thursday to EPS $22.84 (from $19.16) and revenue $38.5 billion (from $33.5 billion), citing stronger Q2 pricing, while Morgan Stanley said rising expectations and a persistent global memory shortage suggest Micron may top consensus. Analysts Expectation * BofA Securities analyst reiterated a "buy" on Micron (NASDAQ: MU) and raised the price target to $1,500 from $950. * Needham analyst Quinn Bolton on Monday reiterated a buy on Micron and raised his price target to $1,550 from $500. * Bernstein SocGen Group raised its price target on Micron Technology (MU) to $1,300 (from $510) and maintained an Outperform rating. MU Q3 2026 earnings after market (4:01 pm ET) Wednesday June 24, 2026 Expected Move by Option Expiration Recent options pricing implies that traders expect MU could swing about +/- $130.00 either way by week's end. A move from current price at 1060 would take the stock to roughly $1190 on the upside or below $930 on the downside. The put/call ratio favor puts for the next four expirations, indicating bearish positioning. Technical Analysis Perspective * Micron's rally began after clearing the prior all-time high of $157-158 in January 2024. * Price action remains inside a rising-channel formation. * Channel upper boundary is near $1,280; midpoint around $920. * Base case: sharp post-earnings pullback to $920. * Alternate case: strong advance toward $1,190, then $1,280. Weekly Candlestick Chart MU Seasonality Chart: Since 2007, MU has finished June down an average of 0.40% in 55% of years; July averages a 1.86% decline, though that drop occurred in only 26% of years. Ali Merchant is a seasoned financial market professional with expertise in Technical Analysis, Treasury & Capital Markets, Trading, Sales, Research, Training, & Fund Management. He is the founder of www.twtlearning.com providing financial education, research and advisory services to fund & hedge fund managers and family offices. He has been trading FX, FX options, US stocks & options, Indices, Commodities & Oil, and Metals Futures. He has a CMT charter, an AAPTA membership, and a CMT Canada membership. He has worked in various roles and organizations in North America and the GCC, such as ABN Amro bank, Thomson Reuters, Refinitiv, MAK Allen & Day Capital Partners, and Bridge Information Systems. He is regarded as an excellent mentor and has trained more than 2000+ users in North America, Gulf countries & Asia on financial markets & products, active and passive trading, and technical analysis strategies. He emanated technical analysis daily and weekly reports for BridgeNews Chicago bureau and updated technical analysis reports on Bloomberg and Reuters while working with ABN Amro bank treasury & capital markets. Has moderated and produced technical analysis reports for Thomson Reuters (Refinitiv) users' chat rooms and trained users on technical analysis techniques and models. Conducted TA & Global Markets outlook workshop with central banks, sovereign funds, global & regional banks & family offices.

Micron Under the Spotlight: What to Expect From Today's Quarterly Earnings Report?

* Micron's earnings will test whether AI-driven growth can justify elevated market expectations. * Analysts remain bullish, though valuation models suggest the stock may be overvalued. * Strong guidance and AI demand outlook will likely determine Micron's post-earnings price reaction. Micron Technology is once again in focus as investors await its quarterly earnings report, scheduled for today. The company occupies a critical position in the semiconductor industry, particularly in memory chips used across AI infrastructure, data centers, consumer electronics, and enterprise computing. At the same time, Micron is one of the most cyclical and volatile stocks in the technology sector. Its results often have implications that extend well beyond the company itself, offering insight into broader demand trends across the semiconductor industry. To assess how the market may react following the earnings release, it is worth examining the stock through several lenses: historical earnings performance, risk profile, valuation, analyst expectations, and the range of potential post-earnings scenarios. What Kind of Stock Is Micron? An Analysis of the Last 22 Years Looking at investment metrics over the past 22 years, one conclusion stands out immediately: Micron Technology is an exceptionally aggressive stock. Its performance has historically been characterized by sharp cycles, significant earnings volatility, and large price swings driven by shifts in memory-chip supply and demand. While these characteristics can create substantial upside during favorable periods, they also make Micron one of the more unpredictable names in the semiconductor sector. Historical data shows: * CAGR: +21.26% * Standard Deviation: 49.68% * Beta: 2.08 * Max Drawdown: -84.87% * Sharpe Ratio: 0.43 * Sortino Ratio: 0.78 What do these numbers mean? The long-term returns have been remarkable. A $10,000 investment made 22 years ago would have grown to more than $750,000. The journey, however, has been anything but smooth. A standard deviation approaching 50% highlights the stock's extreme volatility, while a beta of 2.08 indicates that Micron has historically moved more than twice as much as the broader US equity market. The stock's maximum drawdown of 84.87% further illustrates its risk profile. At several points during its history, investors experienced losses exceeding four-fifths of their capital before the stock eventually recovered. In other words, Micron has delivered exceptional long-term wealth creation, but only for investors willing to endure a level of volatility and risk far above the market average. Short-term analysis: What do the last 60 trading sessions tell us? If we turn to the most recent analysis, the picture doesn't change much. Metrics calculated over the last 60 trading sessions show: * Performance: +196.01% * Standard Deviation: 36.29% * Beta: 3.88 * Active Return: +182.30% * Technical Rating: Buy * Alert: High Risk The most striking figure is probably the beta of 3.88. This means that in recent months, Micron has shown a sensitivity to market movements nearly four times greater than that of its benchmark index. The standard deviation of 36.29% also confirms extremely high volatility. From a technical perspective, the trend remains constructive, and the rating continues to be positive, but it is important to understand that this is a stock where a single trading session can generate percentage changes that would take weeks for many other companies. For this reason, Micron may offer very attractive opportunities, but it is not suitable for investors who cannot tolerate significant fluctuations in their capital. InvestingPro Fair Value: Is Micron Overvalued? One of the most widely used tools by investors is InvestingPro's automated Fair Value, which combines several valuation models to estimate a company's intrinsic value. Currently: * Market Price: $1,051.77 * InvestingPro Fair Value: $748.40 * Theoretical downside potential: -28.8% According to InvestingPro's aggregate model, the stock is therefore trading above its estimated fundamental value. However, it is important to note that the valuation range is very broad: * Pessimistic scenario: $423 * Average fair value: $748 * Bullish scenario: $1,281 This wide range reflects the high level of uncertainty inherent in the memory business, a highly cyclical sector influenced by trends in global demand for data centers, artificial intelligence, and electronic devices. What do analysts think? Although the Fair Value indicates a high valuation, the analyst consensus remains surprisingly positive. The overall survey shows: * 38 Buy ratings * 4 Hold recommendations * 1 Sell recommendation This is one of the highest levels of consensus observed in the market. The average target price also remains close to current levels: * Average target: $1,008.82 * Highest target: $1,750 * Minimum target: $249 The huge gap between the minimum and maximum targets highlights once again just how difficult it is to value a company like Micron. Essentially, analysts agree that the business has strong growth potential, but they disagree entirely on the pace and sustainability of that growth. What do analysts expect from today's quarterly earnings report? Expectations for the earnings release are very high. Estimates indicate: * Expected EPS: $19.92 * Expected revenue: $34.66 billion * EPS revisions: 24 upward revisions and only 1 downward revision in the last 90 days This last figure is particularly important. In recent months, analysts have continuously raised their earnings estimates, pushing expectations to very high levels. This means that simply beating the consensus won't be enough today. The market might demand: * a strong positive earnings surprise; * guidance that exceeds expectations; * Very optimistic guidance on AI demand and data centers. If even one of these factors falls short of expectations, the reaction could be extremely severe. It wouldn't be the first time Micron has reported excellent results and still seen its stock sell off because the market was expecting even more. Why Volatility Could Spike After the Quarterly Earnings Report Given historical metrics and current expectations, investors should brace for a possible sharp swing in the stock price. In fact, we have a particularly explosive combination: * Extremely high beta * Very high standard deviation * Aggressive earnings expectations * Almost unanimously bullish consensus * AI and semiconductor sectors that are extremely sensitive to guidance In these contexts, post-earnings price movements can easily reach double-digit percentages in a single trading session. Why Micron Is in My Portfolio One point worth highlighting is that Micron Technology is currently held in my trading portfolio with a 2.5% allocation. The decision to include the stock was driven by the output of my quantitative selection process, rather than discretionary views or expectations tied to a single earnings report. The position was initiated because Micron met a specific set of risk, return, and efficiency criteria established by the model. At the time of purchase, Micron ranked among the 50 most efficient companies in the S&P 500 according to my proprietary framework, which combines return, risk, alpha generation, and trend quality. Its statistical efficiency stood out, making it a strong candidate for inclusion. That does not make Micron a low-risk investment. As discussed earlier, its historical volatility remains well above average. My objective is not to eliminate risk, but to identify companies that have historically offered an attractive balance between risk and return. For that reason, I have no intention of adjusting the position solely because of today's earnings release. The stock's status in the portfolio will be reviewed again at the beginning of next month, when the model updates its efficiency rankings. If Micron continues to satisfy the strategy's requirements and remains among the most efficient companies in the investable universe, the position will be maintained. Conclusions Today's earnings report is one of the week's most closely watched events for the semiconductor sector. Micron enters the release following a powerful rally, with analyst estimates steadily moving higher and investor expectations firmly anchored around the AI-driven memory boom. At the same time, both its long-term history and recent trading behavior highlight the stock's speculative nature. High volatility, a beta well above the market average, and large post-earnings price swings have long been part of Micron's profile. While InvestingPro's Fair Value model suggests the stock may be trading above estimated fundamentals, analysts remain constructive, supported by strong demand for high-bandwidth memory and continued AI infrastructure spending. From a portfolio perspective, Micron still meets the criteria that justified its inclusion, and unless key efficiency and profitability metrics deteriorate when they are updated next month, the position remains intact. It is also worth remembering that the stock represents just 2.5% of the overall portfolio. That allocation reflects a deliberate balance between capturing the upside of a high-potential company and maintaining disciplined risk management. Ultimately, the key question is not whether Micron beats earnings estimates. The more important question is whether it can exceed the exceptionally high expectations already embedded in the share price. As is often the case with semiconductor stocks, the gap between reported results and market expectations is likely to determine the stock's next major move. Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of any assets and does not constitute an offer, solicitation, recommendation, or advice to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky; therefore, any investment decision and the associated risk are the sole responsibility of the investor. Additionally, we do not provide any investment advisory services.

Investors see Micron earnings as pulse check of AI rally momentum

NEW YORK, June 19 (Reuters) - Investors are seeking signs that the U.S. stock market rally fueled by artificial intelligence has more life left in it, and the upcoming Micron Technology earnings will check the pulse of chip demand to see if it is still accelerating. Despite a sharp mid-week selloff, major U.S. stock indexes are hovering near all-time highs, supported by robust corporate earnings driven by an AI investment boom and relief from the Iran war. Micron's shares are up 298% this year, and the memory chip maker's quarterly report on Wednesday, June 24, will help investors gauge whether the surge in spending on data centers and the resulting profits generated across the semiconductor sector can continue to surprise to the upside. "There's been a lot of momentum here recently," said Andy Pratt, director of investment strategy at Burney Company. "This AI trend is something that's continued, and honestly, what we see with this revenue surprise signal that we monitor is there's still a lot of juice." Apple has agreed to partner with Intel to design and manufacture chips in the U.S., which could significantly boost the chipmaker's turnaround efforts. That helped to lift the S&P 500 nearly 1% so far this week, on pace for a second weekly gain. Meanwhile, the Philadelphia SE Semiconductor index hit a record high and was last up 7% for the week. LOOKING FOR REINFORCEMENTS The stakes are high. Micron's earnings come at a time when valuations are elevated and investors are questioning whether the rally is overextended. Any indication of underlying demand and continued AI-related spending strength could give investors confidence to keep stoking the rally. Micron's earnings are "setting up as a classic positive feedback loop," said Steve Kolano, chief investment officer at Integrated Partners. "That really seems to be kind of the only game in town. ... If you look at the book to bill of semiconductor companies right now and the backlog, the demand is just through the roof in relation to chip capacity." Big Tech has signaled that AI spending is not slowing, set to rise past $700 billion this year from $400 billion in 2025. MACRO BACKDROP STILL LOOMS Although the AI narrative has dominated markets, underlying macroeconomic concerns remain. The Federal Reserve's preferred inflation measure is due next week. So, too, is a final reading on first-quarter GDP. Both reports will provide checks on the health of the U.S. consumer and economic growth. Second-quarter earnings growth for the S&P 500 is estimated at 22.9%, down from 29.3% in the first quarter, according to data provided by Tajinder Dhillon, head of earnings research at LSEG. Drew Matus, chief market strategist at MetLife Investment Management, said strong equity markets have been one of the main supports for consumers, and anything that challenges the AI trade or the continued rise in stocks is being closely watched. "It has not just been market effects but macroeconomic effects at this point," he said. "We're definitely worried about the wealth effect going away and what that might mean." For now, the consensus is that the AI trade remains intact, with little sign of slowing. Newly public SpaceX has reinforced that momentum, and Nasdaq's inclusion of more AI and chip infrastructure names like Astera Labs and CoreWeave will force index funds to buy in. "The way I would view this is," said Burney's Pratt, "you could continue betting on these companies kind of until proven otherwise." (Reporting by Laura Matthews in New York; Editing by David Gregorio)