Fluctuating economic indicators have sent ripples through Wall Street and the crypto sphere as the third quarter nears its end.
Amidst this financial jostle, Micron Technology (NASDAQ:MU) delivered strong financial results, boosting investor confidence in the future of artificial intelligence (AI). At the same time, Meta Platforms (NASDAQ:META) unveiled fresh AI innovations, sparking chatter across the tech community.
Speculation is rife around OpenAI, as talks of a restructuring and key staff departures swirl around the premier artificial intelligence research laboratory.
Keep track of the latest tech happenings with the Investing News Network’s insightful review.
1. Impactful US Job Data Shapes Week Closure
Wall Street kicked off the week on a positive note as major indexes opened slightly up on Monday (September 23). The September S&P Global Services Purchasing Managers’ Index outperformed expectations at 55.4, instilling positivity in the economy’s health.
However, Phil Blancato, CEO of Ladenburg Thalmann Asset Management, cautioned that the market’s anticipation of more rate cuts by the US Federal Reserve may lead to volatility in the upcoming weeks.
On Tuesday (September 24), China’s announcement of substantial stimulus measures, including issuing special sovereign bonds worth about 2 trillion yuan, caused global stocks to surge. The S&P/TSX Composite Index (INDEXTSI:OSPTX), S&P 500 (INDEXSP:.INX), and Nasdaq Composite (INDEXNASDAQ:.IXIC) all reached record highs. Chip stocks like Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC) propelled the PHLX Semiconductor Sector (INDEXNASDAQ:SOX) upwards by 1.23 percent.
By Wednesday morning (September 25), major indices remained steady, with the Nasdaq Composite dipping by 0.13 percent post-opening. However, midday recoveries by tech giants such as NVIDIA (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL) reversed earlier losses, pushing the tech-heavy index to close a mere 0.17 percent above its opening mark. In contrast, the S&P 500 and S&P/TSX Composite Index suffered losses.
Thursday’s (September 26) US weekly initial jobless claims data revealed 218,000 new claims compared to an anticipated 225,000, signaling a robust labor market.
The tech industry, known for its tumultuous nature, experienced ups and downs throughout the week as various stocks navigated the changing tides of the market.
Micron’s Meteoric Rise and Bitcoin’s Break for Freedom
Record Highs and Market Surges
The week witnessed a market whirlwind with Micron’s stellar performance fueling midday gains, marking a meteoric 18 percent hike in share prices. The S&P/TSX Composite Index notched a fresh record above 24,000 for the second time this week. Simultaneously, chip stocks drove the PHLX Semiconductor Sector up by an impressive 3.77 percent. The S&P 500 touched a new intraday peak before settling slightly lower, still keeping a respectable 0.4 percent gain. However, stealing the spotlight was the Russell 2000, spearheading Thursday’s gains and capping off with a robust 0.62 percent surge.
Bitcoin’s Escape Amidst Market Turbulence
Bitcoin’s fortunes took a favorable turn as it broke free from the shackles of price constraints, spurred on by a favorable Fed rate cut. Despite encountering the daunting US$65,000 resistance level, whispers of an imminent breakout were rife, fueled by conducive market conditions and historical data cues.
A period of relative stability for Bitcoin and Ether was witnessed amidst modest gains by altcoins, hinting at a nuanced correlation with surging Asian stock markets and US economic narratives. ETFs focused on Bitcoin maintained their upward trajectory for the second consecutive week, drawing a staggering US$136 million in inflows – a record not seen in nearly a month.
Micron’s Magnificent Q4 Results
The renowned Micron unveiled its Q4 fiscal results midweek, initiating an astonishing 18 percent surge in share value by Thursday morning. By week’s end, Micron shares peaked at US$107.47, reflecting a remarkable 16 percent weekly growth and a substantial 9.82 percent monthly upswing.
In Q4 alone, Micron raked in a revenue of US$7.75 billion, a marked improvement from the previous quarter’s US$6.81 billion. It was a stellar jump from the US$4.01 billion revenue posted in the corresponding period the previous year. The full fiscal year painted an even rosier picture, boasting a revenue of US$25.11 billion compared to the US$9.57 billion of the previous year.
A Glimpse Into the Future
Micron’s President and CEO, Sanjay Mehrotra, effervescently proclaimed Micron’s monumental 93 percent year-over-year revenue hike in fiscal Q4, attributing it to robust AI demand propelling data center DRAM products and high bandwidth memory to new heights. The company’s NAND revenue record was anchored by stellar data center SSD sales, which forayed past the US$1 billion threshold in quarterly earnings for the first time.
Looking ahead, Mehrotra exuded optimism for fiscal 2025, foreseeing a record-breaking Q1 revenue and a substantial financial feat marked by improved profitability throughout the fiscal year.
The Tech Stock Rollercoaster: Tracking Micron’s Rise and Meta’s Fall
Micron’s Dominance and Impact on Chip Stocks
Amidst economic uncertainties and market volatilities, Micron Technology successfully steers the storm, projecting a revenue of around US$8.7 billion for its first fiscal quarter of 2025. This solid forecast not only highlights Micron’s unwavering confidence in the semiconductor chip market but also reverberates throughout the industry, boosting the shares of key players. NVIDIA, Taiwan Semiconductor Manufacturing Company, Advanced Micro Devices, and Qualcomm all experienced a surge in their stock prices, a testament to Micron’s positive influence on the sector.
Meta’s Unveiling: A Double-Edged Sword
Meanwhile, Meta faced a tumultuous week as it unveiled a slew of new AI innovations during its Meta Connect event. Despite showcasing promising products like the budget-friendly Quest 3S headset and the Wayfarer Ray-Ban Meta smart glasses, the tech giant suffered a 0.44 percent dip in its share price. CEO Mark Zuckerberg’s revelation of upcoming AI features, including lip-synced translations and voice chat capabilities, and the introduction of Meta’s full holographic augmented reality glasses garnered mixed reactions from investors. The unveiling of Llama 3.2, Meta’s latest language model with enhanced multilingual support, underlined the company’s relentless pursuit of technological advancement.
The OpenAI Restructuring Speculation
Conversely, speculations swirled around OpenAI as reports hinted at the company’s potential restructuring into a for-profit entity. This move, allegedly aimed at attracting investors, could mark a significant shift for the non-profit organization. Moreover, with key executives, including Chief Technology Officer Mira Murati, stepping down, the restructuring plans, which may see CEO Sam Altman obtaining a stake potentially valued at US$150 billion, raise questions about the future direction of OpenAI. The lack of a concrete timeline for this transformation adds an aura of uncertainty to the scenario.
