Tech rally fuels Nasdaq gains as Micron tops $1 trillion cap

Micron Technology led a tech‑heavy rally that pushed the Nasdaq Composite higher, with the memory chipmaker adding another 8% in pre‑market trading after a 19% jump the day before, taking its market value above $1 trillion for the first time [1]. The broader market was buoyed by falling oil prices and strong AI infrastructure demand, while Nvidia grappled with a new export‑control investigation [1].

Key takeaways

• Micron’s pre‑market surge lifted its market cap past $1 trillion, marking a defining trade of the rally [1].
• Nvidia is under investigation for alleged smuggling of restricted AI chips to China, but its CEO remains confident about long‑term valuation growth [1].
• SK Hynix became the first South Korean memory maker to reach a $1 trillion valuation, driven by AI‑related demand [1].
• Futures indicated a continued advance for the Nasdaq 100 (up 0.9%) as oil prices slipped below $89 per barrel following an Iran agreement on Strait of Hormuz traffic [1].
• Goldman Sachs expects AI infrastructure investment to account for half of projected earnings growth in the S&P 500, raising its year‑end target to 8,000 [1].

Tech‑driven momentum lifts Nasdaq and futures

The Nasdaq Composite rose 0.49% to 30,219 in early trading, supported by a surge in semiconductor and AI‑related stocks [1]. Nasdaq 100 futures led the market, advancing 0.9%, while S&P 500 futures added 0.3% and Dow futures rose 0.2% [1]. The rally was reinforced by a decline in crude oil prices after Iran’s state television announced plans to reopen the Strait of Hormuz within a month, easing inflation concerns that have lingered over the market [1].

Micron’s continued climb was the centerpiece of the day, with an 8% pre‑market gain on top of Tuesday’s 19% surge that propelled its market cap past the trillion‑dollar threshold [1]. The stock’s momentum underscored the broader enthusiasm for AI‑related memory demand, a theme echoed by SK Hynix’s own entry into the trillion‑dollar club, marking the first such milestone for a South Korean chipmaker [1].

Regulatory headwinds for Nvidia amid AI boom

While the AI sector enjoys strong investor sentiment, Nvidia faced fresh scrutiny as Taiwanese prosecutors alleged that restricted AI chips were smuggled to China via Japan, involving falsified export documents for servers loaded with Nvidia components [1]. Despite the investigation, CEO Jensen Huang expressed confidence that Nvidia’s market cap will be “very much higher” in three to five years [1]. The episode highlights ongoing regulatory risks for companies supplying advanced semiconductor technology to the AI ecosystem.

Why it matters

The current rally illustrates how AI infrastructure demand is reshaping market dynamics, lifting even niche memory players like Micron and SK Hynix to trillion‑dollar valuations. At the same time, regulatory challenges for firms such as Nvidia remind investors that rapid growth can attract heightened scrutiny. With Goldman Sachs projecting that AI infrastructure will drive half of earnings growth in the S&P 500, the sector’s influence on broader market performance is likely to deepen, while investors watch for how export‑control issues may affect the valuation trajectory of leading AI chipmakers.