Markets opened with risk-on momentum after two leading chipmakers issued forecasts that investors interpreted as confirmation of sustained demand for artificial intelligence infrastructure.
Nasdaq futures climbed roughly 2% on Thursday following upbeat projections from Micron and Qualcomm. Micron said customers have committed $22 billion to secure its memory chips, while Qualcomm put forward a forecast of $15 billion in data-center revenue by 2029. The company-specific guidance spurred gains in tech stocks internationally.
Shares of Micron listed in Europe jumped 18.7% as traders digested the scale of customer commitments. The optimistic outlook from the chip sector propagated through markets in Asia and Europe, sending technology names sharply higher across those regions.
Investors were preparing for upcoming earnings reports from both Micron and Qualcomm to assess whether current valuations - for these companies and for related groups such as chip designers and hyperscalers - are supported by improving fundamentals tied to the broader AI investment cycle.
U.S.-listed shares of Micron and Qualcomm have seen notable gains this quarter, rising more than 200% and about 50%, respectively. The Philadelphia Semiconductor Index is on pace for its strongest quarter on record, according to LSEG data, underscoring the surge in demand expectations for semiconductor components used in AI and data-center applications.
Still, the market rebound arrived against a backdrop of recent pressure on technology equities. Investor concerns over increased debt-funded spending and the prospect of higher borrowing costs had weighed on the sector in recent weeks. Micron's forecasts helped ease some of those worries, even as the company also outlined plans to raise capital expenditure.
Despite the intraday gains, major benchmarks were showing signs of a broader pullback for the month and week. The Nasdaq remained on track for its largest monthly decline since March 2025, while the Philadelphia semiconductor index was headed for its worst week since the start of the Middle East conflict earlier this year.
At 03:00 a.m. ET, futures indicated modest gains across the broader market: Dow E-minis were up 66 points, or 0.13%; S&P 500 E-minis were up 52.75 points, or 0.71%; and Nasdaq 100 E-minis were up 606.75 points, or 2.06%.
The attention of market participants was also turning to forthcoming U.S. inflation data. The Federal Reserve's preferred inflation gauge - the Personal Consumption Expenditures Price Index - was due later in the day. Economists polled by Reuters expected the annual reading to reach 4.1%, a rate more than twice the central bank's 2% target.
In response to persistent price pressures, traders were pricing in the possibility of further policy tightening. The CME Group's FedWatch Tool showed market participants anticipating at least a 25 basis point interest-rate increase by as early as September.
One market-oriented service noted in trading commentary evaluates companies including Qualcomm using automated models. The service said it analyzes thousands of companies monthly across more than 100 financial metrics, identifying names with attractive risk-reward profiles; past highlighted winners have included Super Micro Computer (+185%) and AppLovin (+157%).