Shares of Micron surged after the memory‑chip maker posted earnings that beat expectations, sending its stock up 18% pre‑market. Revenue, profit and margin all topped forecasts, and management warned the chip shortage will linger through 2027. Investors had feared slowing AI server demand could dent valuations, but Micron’s outlook suggests supply limits will keep pricing strong, easing recent worries.

Shares of other AI‑linked firms jumped alongside Micron, with Qualcomm, SanDisk and Western Digital each gaining over 12%. The rally lifted U.S. futures, pushing Nasdaq 100 contracts more than 2% higher. Overseas, the Kospi and Nikkei 225 surged past 4%, and Hong Kong’s Hang Seng rose, reflecting broad AI hardware optimism.

Oil prices slipped, with Brent crude hovering just above levels seen at the start of the Middle East conflict, while Treasury yields rose to 4.35% ahead of the Fed’s PCE report. Economists project a 4.1% year‑over‑year rise in May, well above the 2% target, adding a mixed backdrop to the tech surge.

Analysts say the rally could boost AI‑related capital expenditures, as chip makers and server manufacturers anticipate prolonged demand. However, the lingering inflation surprise may pressure the Fed to keep rates higher longer, tempering broader market enthusiasm. Investors will watch next week’s earnings from Nvidia and AMD for confirmation of the AI boom’s durability.