Micron, significantly exceeding expectations... Semiconductors surge across the board after hours

Summary

Park Myung-suk analyzes Micron's blowout earnings that crushed estimates, triggering a broad semiconductor rally after hours. He highlights that AI memory demand remains exceptionally strong, which implies massive profits for Korean leaders Samsung and SK hynix, and discusses UBS upgrades for AMD and ARM on CPU demand. Meanwhile, falling oil prices and a supportive macro backdrop create a Goldilocks environment, while speculative growth names face risks from high rates.

• Micron's EPS of $25 vs. $20.4 estimate and 85% margin validate the AI memory super-cycle and send its stock up 13% after hours.
• Samsung Electronics and SK hynix, as the top two memory makers, are likely producing even larger profits from the same AI boom.
• Qualcomm's data center custom chip revenue is expected to become meaningful from next year, forming a twin engine with Micron.
• UBS raised AMD target to $670 and ARM to $455 on expectation of rising CPU shortages and adoption.
• WTI crude fell sharply into the $60s as Hormuz Strait traffic recovers and the US signals tolerance for a strong dollar, prompting hedge funds to short oil aggressively.
• JPMorgan lifted the S&P 500 target to 7,800, citing AI investment, easing geopolitics, and improving earnings, while Bitcoin remains under pressure near $50k.
• Speculative growth stocks in space and robotics face high short interest due to lack of proven earnings in a high-rate environment.