U.S. equities are being driven by an accelerating memory and storage supercycle tied to AI infrastructure buildouts. Micron shares have gone parabolic as demand for high-bandwidth memory surges, with the stock gapping higher following strong earnings and bullish commentary from Seagate. Management signals suggest the AI-driven upgrade cycle in storage and memory still has room to run, keeping investor enthusiasm elevated. Upcoming earnings from Western Digital are expected to further clarify how durable this demand may be across the sector.
While momentum remains powerful, technical indicators show parts of the memory trade are deeply overbought, raising the risk of sharp pullbacks if expectations are not met. At the same time, the possibility of short covering continues to add fuel to upside volatility.
Globally, South Korean equities continue to outperform, led by heavyweight memory manufacturers. Diplomatic talks in Washington around trade policy are being closely watched, as any easing of tariff threats could extend the rally in Korean stocks and reinforce the global AI supply chain narrative.
Elsewhere in semiconductors, Texas Instruments surprised markets by projecting sequential revenue growth for the first time in years, supported by data center demand. Macro forces also played a role, with a sharp dollar decline boosting risk assets broadly. Investors are now focused on the Federal Reserve’s policy decision later today.
Key stocks and ETFs to watch include $MU, $STX, $WDC, $TXN, and $EWY.
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